In a swift reversal, the
Nigerian government has suspended its plan to impose a 0.5% levy on domestic
electronic transactions to fund national cybersecurity improvements. The move
comes after widespread public backlash against the proposed tax, which was
announced by the Central Bank of Nigeria on May 6.
The levy aimed to
generate funds to combat cyber-attacks, but it faced intense criticism for
increasing taxes amid high inflation, falling investment, and rising living
costs. President Bola Tinubu halted the tax, and Information Minister Mohammed
Idris confirmed its suspension on May 14.
The proposed levy was
initially intended to strengthen national cybersecurity, with the Central Bank
estimating it could raise about 3 trillion naira ($1.9 billion) annually.
However, critics argued that it lacked cost justification and would only
exacerbate the country's economic woes.
Experts, including Wale
Ajayi of KPMG, stressed the need for transparency, gradual tax reforms, and
responsible spending to avoid economic shocks and unintended consequences. The
poor economy could increase cyber risks, as noted in Deloitte's Nigeria
Cybersecurity Outlook 2024, which warned of potential rises in
insider-supported cybercrimes.
By: Nana Appiah Acquaye
