The recent 0.5% cybersecurity tax imposed by the Central Bank of Nigeria has sparked outrage among Nigerians.
The National Bank of Nigeria, in a statement to all banks on Monday, urged banks to waive the 0.5% tax imposed on all electronic transactions under the Cyber Crimes (Prohibition, Prevention, etc.) (Amendment) Act, 2024. He must be aware of the new law.
Cyber Security Tax
0.5% tax instead of 0.005% on all electronic transactions.
Tax rates are used by all banks, other financial institutions and payment service providers.
The CBN said the tax should be transferred to the National Cyber Security Fund (NCF), administered by the Office of the National Cyber Security Agency (ONSA).
What are the consequences of the cybersecurity tax?
This means that e-banking access for users in Nigeria will be charged 0.5% per transaction. For example, an electronic transaction of 1,000 Naira will be subject to N5 cybersecurity tax and a transaction of 10 million Naira will cost 50,000 Naira.
Businesses that are exempt from cyber security tax
There are many businesses that are exempt from cyber security tax.
The National Bank of Nigeria has made available to its customers 16 businesses that are exempt from paying taxes, including loans and refunds, salaries, transfer transactions within the same customer’s account in the same bank or between different banks, instructions from other financial institutions. institutions. Financial institutions Telecommunications companies, mortgage loans, transfers between banks and banking institutions, transfers between banking institutions, verification of cancellations and contracts, etc.
Call for suspension of cybersecurity levy
Center for Private Enterprise Development and Nigerian Trade Unions call for suspension of cybersecurity levy.
CPPE Director Dr. Muda Yusuf stated that Nigerians deal with many taxes;
NLC President Joe Ajaero also called for the removal of the tax.
He noted that it would not be appropriate to tax the energy sector without taking into account its impact on employees and vulnerable people in society.
