The Nigeria Labour Congress (NLC) has rejected the proposed 0.005 percent Cybersecurity Levy on electronic transfers, describing it a gang-up to extort the Nigerian people.
The levy mandated by the Central Bank of Nigeria (CBN) is designated to be deducted at the moment of transaction origination. This directive signifies a proactive approach by the CBN to regulate and potentially mitigate certain financial activities within the Nigerian economy.
By enforcing the deduction at the initiation of the transaction, the CBN aims to ensure better oversight and control over financial transactions across various sectors.
Reacting to the development, the NLC criticised the policy, describing it as an additional financial burden on the already strained pockets of Nigerian workers.
The NLC, in a statement signed by its President, Comrade Joe Ajaero, expressed its disapproval of the levy, labeling it as an exploitative move by the ruling elite to further extort the masses.
The congress also questioned the government’s intention behind the levy, suggesting it might discourage electronic transactions and push people towards cash dealings, which could be seen as a regression in the digital age.
Despite recognising the importance of cybersecurity, the Labour union argued that the levy is unjustifiable, especially without considering its impact on workers and vulnerable segments of the society.
Ajaero’s concern regarding the levy as another tax burden on Nigerians amidst existing economic pressures. Nigeria’s economy has been undergoing significant challenges, including inflation, unemployment, and the impact of the COVID-19 pandemic. Introducing a new levy could exacerbate these difficulties for ordinary citizens already struggling to make ends meet.
The NLC also expressed concerns over the broader implications of the levy on everyday transactions, which could lead to a decrease in disposable income and purchasing power for the average citizen.
The congress therefore warned that the levy could have a domino effect, causing businesses to pass on additional costs to consumers, thereby fueling inflation in an already struggling economy.
The statement’s criticism of the government for failing to utilize previously allocated funds to enhance the quality of life for its citizens or invest in infrastructure underscores a pervasive issue of mismanagement and inefficiency in governance.
This failure not only reflects a lack of accountability and transparency but also diminishes public trust in the government’s ability to address key societal needs effectively.
According to Ajaero, the Cybersecurity Levy could serve as a potential cause of severe social insecurity for workers and the masses.
The labour leader called on the Federal Government to reconsider the directive and focus on policies that alleviate financial burdens rather than exacerbate them.
The statement reads in parts, “The Nigeria Labour Congress (NLC) vehemently condemns the recent directive by the Central Bank of Nigeria (CBN) to levy a 0.005 percent Cybersecurity Levy on electronic transfers.
“We see in this levy another gang-up by the ruling elite to continue its extortion and exploitation of hapless and helpless workers and the masses so that their cronies in various financial centres can continue wallowing in unbridled consumption”.
It continued, “During our last May day speech, we called on the government to prioritise the welfare of Nigerian workers and masses in their policy directions and actions instead of profit seeking that unleashes more pressures on the people.
We see this as a Cybersecurity levy that will inflict severe social security on workers and masses.
“We reiterate our commitment to championing the rights and welfare of Nigerian workers and masses and call for an immediate stoppage of the implementation of this vexatious CBN’s directive on the Cybersecurity Levy,” Ajaero said.
