Senator Ndume has criticised the proposed cybersecurity levy, expressing worries about an increased tax burden without an increase in income.
Ali Ndume, the senator representing Borno South Senatorial District in the Senate, has condemned the federal government’s controversial cybersecurity levy, stating that it is improper for the government to continue to levy citizens while doing nothing to increase their income.
This comes as the Trade Union Congress (TUC) lambasted opposition legislators in the National Assembly for their perceived silence on the contentious cybersecurity levy.
Ndume, who was a guest on a television interview over the weekend, claimed that the planned cybersecurity levy will increase Nigerians’ financial burden.
“You cannot charge them taxes if you do not increase their income. Their source of revenue is not being expanded or increased. “I am not one of those who support taxation,” he stated. Ndume and other National Assembly members recently modified the Cybersecurity Act.
He did, however, say that while he supported the Act, he did not notice this section that has placed a burden on Nigerians.
“I supported the change to the Cybersecurity Act, but not in detail, and I am not attempting to avoid responsibility. We have challenges with cybercrime, as you are aware, and the government needs to improve the Cybercrime Act, which is what I understand from the amendment. “
Looking into the details would have been the obligation of interested parties. If I had known there was a problem with a cost being shifted to a client or a Nigerian, I would not have agreed,” he said.
Ndume stated that parliamentarians should not bear exclusive responsibility for the Act, adding that if some issues go unnoticed by lawmakers, civil society organisations and labour unions are expected to flag out grey areas during public hearings.
In a circular dated May 6, 2024, to all deposit money institutions, mobile money operators, and payment service providers, the apex bank mandated that the levy be deducted and transferred to the National Cybersecurity Fund (NCF), which is controlled by the Office of the National Security Adviser (ONSA).
On May 6, the Central Bank of Nigeria (CBN) authorised banks and other financial institutions to impose a 0.5% cybersecurity fee on electronic transfers. The apex bank stated that the deductions would be directed to the National Cybersecurity Fund, which would be managed by the Office of the National Security Adviser (ONSA).
Many Nigerians and groups have expressed their unhappiness, pointing out that banking transactions are becoming more expensive due to multiple fees.
The CBN directive has since received widespread outrage, with labour groups threatening statewide action if the government fails to rescind it.
However, the House of Representatives has asked the CBN to rescind the circular requiring financial institutions to begin implementing the 0.5% cybersecurity levy, calling it as “ambiguous”.
During the same event, the TUC criticised opposition lawmakers in the National Assembly for their perceived silence on the contentious cybersecurity levy.
The TUC President, Festus Usifo, questioned why opposition parliamentarians, who are representatives of the people, have yet to take a position on the contentious issue.
He accused the ruling party, the All Progressives Congress (APC), of making life more difficult for Nigerians.”Where are the opposing parties in the National Assembly?” “Where are the PDP, Labour Party, and NNPP members?” The visibly enraged Usifo inquired.
Even if the ruling party wishes to silence Nigerians and the opposition, you will hear nothing from them. It’s actually that horrible, these mindset is reflected in the fact that we do not see bills like these advertised in newspapers or on major television networks.
What are they doing with the National Assembly’s budget? According to him, lawmakers did not consider organised labour while enacting the Cybercrime (Prohibition, Prevention, etc) (Amendment) Act 2024.