Cybersecurity Levy: You Cannot Heap Taxes On People When Income Is Not Increasing – Ndume

Senator Ali Ndume has voiced strong opposition to the newly implemented cybersecurity levy, arguing that it unfairly increases the tax burden on Nigerians without enhancing their income.

Speaking on Channels Television’s Politics Today on Friday, the senator representing Borno South Senatorial District expressed his concerns about the financial implications of the levy for ordinary citizens.

“You cannot be loading taxes on people when you are not increasing their income. Their source of income, you are not widening it, you are not increasing it. I am not part of those that support levying people anyhow,” Ndume stated.

Naija News reports that the levy in question stems from recent amendments to the Cybersecurity Act passed by the National Assembly.

While Ndume supported the overall intent to strengthen cybersecurity laws, he regretted overlooking aspects of the legislation that have since been criticized for imposing additional financial strains on the public.

“The amendment to the Cybersecurity Act, I supported it but not the nitty-gritty and I am not trying to run away from any blame,” he explained.

Ndume also pointed out that oversight of such legislative details should not rest with lawmakers alone.

He emphasized the role of civil society organizations and labor unions in scrutinizing proposed laws during public hearings to identify and address potential issues before they become law.

The controversy surrounding the cybersecurity levy escalated following a directive issued by the Central Bank of Nigeria (CBN) on May 6, 2024.

The directive orders all deposit money banks, mobile money operators, and payment service providers to deduct a 0.5% levy on certain transactions to fund the National Cybersecurity Fund (NCF), managed by the Office of the National Security Adviser (ONSA).

This move has led to widespread criticism and threats of nationwide protests from labor unions, who demand that the government retract the directive.

In response to these concerns, the House of Representatives has called on the CBN to withdraw the circular, labelling it “ambiguous” and challenging its imposition without clearer justification.