NLC Rejects FG's Newly Introduced Cybersecurity Levy

Posted by Thandiubani on Wed 08th May, 2024 - tori.ng

NLC President Joe Ajaero stated the NLC position in a statement made available to newsmen on Tuesday in Abuja.

The Nigeria Labour Congress, NLC, has reacted to the introduction of the new cybersecurity levy.

Recall that the Central Bank of Nigeria, CBN had ordered banks to deduct 0.5 per cent for cybersecurity levy on electronic transfers.

NLC President Joe Ajaero rejected the new levy in a statement made available to newsmen on Tuesday in Abuja.

Ajaero was reacting to a recent circular issued by the CBN, mandating banks and payment service operators to effect the deductions, effective in two weeks.

The CBN has said that the move is ‘ostensibly aimed at bolstering cybersecurity measures, threatens to exacerbate the financial strain already faced by the populace.’

According to Ajaero, the NLC vehemently condemned the directives and therefore called for an immediate stoppage and reversal of the policy.

He said this levy, to be implemented by deduction at transaction origination, is yet another burden on the shoulders of hardworking Nigerians.

“The Nigeria Labour Congress recognises the importance of cybersecurity in today’s digital age.

“However, imposing such a levy on electronic transactions without due consideration for its implications on workers and vulnerable segments of society is unjustifiable.

“This levy stands as another tax too much for Nigerians, burdening them with additional financial responsibilities. We see this levy as another gang-up by the ruling elite to continue its extortion and exploitation of hapless and helpless workers and the masses,” he said.

He explained that while the CBN had exempted interbank transfers and loan transactions from the levy, the broader impact on everyday transactions would not be overlooked.

Ajaero further stated that such deductions directly affect the disposable income of workers and further diminish the purchasing power of the common citizen.

The NLC president also noted that domestic manufacturers and other businesses were already shuttering as a result of the stifling socioeconomic environment.

He added that, yet, instead of creating a business-friendly environment to encourage greater investments in the economy, the opposite seems to be what is being practised.

Ajaero called on the Federal Government to reconsider the directives and prioritise policies that alleviate the financial burdens of Nigerians.

“We urge a collaborative approach between the government, regulatory bodies, and stakeholders to develop sustainable cybersecurity measures that do not unduly burden the populace.

“We reiterate our commitment to championing the rights and welfare of Nigerian workers and the masses,” he said.