NEF’s Director of Publicity and Advocacy, Abdul-Azeez Suleiman, in a statement on Thursday, expressed the organisation’s dissatisfaction with the policy, citing the escalating costs associated with banking transactions as a result of multiple charges.
A prominent socio-cultural organisation representing the interests of Northern Nigeria, Northern Elders Forum (NEF), has described the Central Bank of Nigeria's recent decision to impose a cybersecurity levy on bank customers as arbitrary, illegal, and out of touch with the realities faced by Nigerians.
NEF’s Director of Publicity and Advocacy, Abdul-Azeez Suleiman, in a statement on Thursday, expressed the organisation’s dissatisfaction with the policy, citing the escalating costs associated with banking transactions as a result of multiple charges.
It called on President Bola Tinubu’s government to reconsider the policy and explore alternative measures to ease the financial strain on individuals while still promoting the use of electronic payments.
The NEF pointed out that the introduction of the cybersecurity levy, in addition to existing fees such as stamp duty, transfer fees, value-added tax, and SMS charges, will place an unbearable financial burden on individuals engaging in electronic transactions.
The forum “highlighted the various charges that bank customers now face, including cybersecurity levies ranging from ₦5 on ₦1,000 to ₦50,000 on ₦10,000,000 transactions, transfer fees, stamp duty, and value-added tax. These additional costs have significantly increased the overall expense of electronic transactions for both senders and receivers”.
It said, "While acknowledging the importance of cybersecurity in safeguarding electronic transactions, the NEF emphasized the need for a more balanced approach that ensures the costs of security measures are reasonable and do not excessively burden bank customers.
"The NEF said in a country already grappling with economic challenges and hyperinflammatory conditions, the additional financial burden imposed by the cybersecurity levy is unjust and unfair and urged the government and relevant stakeholders to find a sustainable solution that strikes a fair balance between enhancing cybersecurity and alleviating the financial strain on the Nigerian populace.
"It is imperative that the administration takes into account the concerns raised by a vast majority of Nigerians and prioritizes policies that protect the interests of the people while also fostering economic growth and development.
"The forum's stance highlights the importance of considering the impact of regulations on ordinary citizens and advocating for measures that promote financial inclusion and alleviate economic challenges.
"It is crucial that the government listens to the concerns of organizations like the NEF and works towards implementing policies that benefit all Nigerians, rather than burdening them with additional costs and hardships.”
"It is essential to strike a delicate balance between enhancing cybersecurity and easing the financial burden on the populace, particularly at a time when the Nigerian economy is facing significant challenges due to inflation and other economic factors," Suleiman said.
"The NEF urges the authorities and relevant stakeholders to engage in meaningful review and find a solution that addresses the legitimate concerns raised by the public regarding the cybersecurity levy."
The CBN had said that deposit money banks in the country would start charging 0.5% cybersecurity levy on transactions.
This was contained in a circular dated May 6, 2024 by the apex bank to all commercial, merchant, non-interest and payment service banks as well as mobile money operators and payment service providers.