Nigeria Labour Congress Rejects CBN’s 0.5% Cybersecurity Levy on Electronic Transfers

The Nigeria Labour Congress (NLC) has strongly opposed the recent directive by the Central Bank of Nigeria (CBN) to impose a 0.5% cybersecurity levy on electronic transfers.

NLC President Joe Ajaero expressed the union’s position in a statement released on Tuesday in Abuja. The statement was in response to a circular issued by the CBN, instructing banks and payment service operators to implement the levy within two weeks.

Ajaero condemned the directive, calling for an immediate halt and reversal of the policy.

He stated that while cybersecurity is crucial in today’s digital age, imposing such a levy on electronic transactions without considering its impact on workers and vulnerable groups is unjustifiable.

According to Ajaero, the levy, to be deducted at transaction origination, adds to the financial burden of hardworking Nigerians.

He described it as another form of exploitation by the ruling elite, burdening the populace with additional financial responsibilities.

Despite the CBN exempting interbank transfers and loan transactions from the levy, Ajaero emphasized that the broader impact on everyday transactions cannot be ignored.

He highlighted that such deductions reduce workers’ disposable income and diminish the purchasing power of ordinary citizens.

Ajaero also noted that the current socioeconomic environment has already led to the closure of domestic manufacturers and businesses.

Instead of creating a business-friendly environment, policies like the cybersecurity levy seem to add to the challenges faced by Nigerians.

The NLC president called on the Federal Government to reconsider the directive and prioritize policies that alleviate the financial burdens of Nigerians.

He urged collaboration between the government, regulatory bodies, and stakeholders to develop sustainable cybersecurity measures that do not overburden the populace.

Ajaero reiterated the NLC’s commitment to advocating for the rights and welfare of Nigerian workers and the masses.