Internet group says cybersecurity levy will affect businesses

Nigeria Internet Group, an advocacy group that promotes internet access and connectivity in Nigeria, has kicked against the planned introduction of the cybersecurity levy by the Central Bank of Nigeria.

The President of NIG, Destiny Amana, who raised the concern in a statement, said if introduced, it would impact negatively on the Nigerian economy, businesses, and consumers.

He, therefore, urged the CBN to consider alternative approaches to strengthening cybersecurity without unduly burdening the Nigerian populace.

Amana said: “The recent announcement by the CBN regarding the introduction of a cybersecurity levy on electronic transactions is a matter of grave concern.

“The levy, pegged at 0.5 per cent of all electronic transaction values, is purportedly a provision of the recently passed 2024 Cybercrime (Prohibition, Prevention, etc.) Amendment Act.

“While we recognise the importance of cybersecurity measures in safeguarding our digital infrastructure and protecting against cyber threats, we cannot ignore the potential negative impact of this levy on the Nigerian economy, businesses, and consumers.”

According to the Nigeria Internet Group president, the imposition of a cybersecurity levy on electronic transactions is not only burdensome but also raises questions about its necessity and effectiveness in addressing cyber threats.

“We are deeply concerned about the potential for this levy to stifle innovation, hinder financial inclusion efforts, and place undue financial burdens on individuals and businesses, particularly small and medium-sized enterprises,” he asserted.

Amana cited the lack of adequate consultation and transparency surrounding the implementation of the proposed levy.

He added that policies of such magnitude should be subject to thorough consultation with relevant stakeholders, including industry experts, businesses, and consumer advocacy groups.

He declared that the group remained committed to advocating for policies and initiatives that promote a vibrant and inclusive digital economy while safeguarding the interests of all stakeholders.

Meanwhile, President Bola Tinubu was reported to direct the apex bank to suspend the cybersecurity levy.