It faulted the decision that “unjustifiably imposes extra burden on the masses amidst crunching economic circumstances”.
The Coalition of Northern Groups (CNG) has described the proposed imposition of a 0.5% cybersecurity levy on electronic transactions in the Nigerian banking system by the Central Bank of Nigeria (CBN) as draconian.
It faulted the decision that “unjustifiably imposes extra burden on the masses amidst crunching economic circumstances”.
The CBN announced the introduction of a 0.5% cybersecurity levy on transactions in a circular dated May 6, 2024 and addressed to all commercial, merchant, non-interest and payment service banks as well as mobile money operators and payment service providers.
However, CNG National Coordinator, Comrade Jamilu Aliyu Charanchi in a statement on Wednesday, said the levy exemplified the government's lack of compassion and empathy to the plight of Nigerians in the face of the current economic hardship.
It described the policy as an extortion that is “totally unacceptable”.
CNG said the government had already strangled the people from any derivable benefit in healthcare, education, fuel subsidy and agriculture to the point that millions of Nigerians cannot afford a decent living in whatever form.
The group called on the CBN to immediately reverse the decision that unjustifiably imposes extra burden on the masses amidst crunching economic circumstances.
The statement reads in part, "The Coalition of Northern Groups (CNG) strongly rejects the proposed imposition of a 0.5% cyber security levy on every electronic transaction in the Nigerian banking system by the Central Bank of Nigeria (CBN).
"This levy, which is expected to be effective within the next two weeks, exemplified the federal government's lack of compassion and empathy to the plight of Nigerians in the face of the current economic hardship.
"It is a crass heartlessness that is a sequel to fuel subsidy removal which now made fuel above N1000 per liter and the electricity tariff abrupt soaring that is tantamount to another daily-light extortion in the offing by the government that came to being through democratic processes.
"The CNG describes the policy as totally unacceptable extortion that is callously being burdened on Nigerians that are already suffering from neoliberal exploitations through the Government's thoughtlessness to the plight of the downtrodden.
"We believe that this additional charge is completely unjustifiable as Nigerians are already being fleeced through collection of stamp duty, transfer fee, VAT, and SMS charges in the Nigerian banking sector.
"While we concur that securing our cyber space is paramount, that can only be justified as a corollary to the stabilization of the economy and improvement of the standard of living of Nigerians. Even at that, the current 0.5% percent is quite exorbitant in a country that has not fully implemented N30, 000 minimum wage but has reportedly raised the disposal income of the members of the National Assembly.
"The CNG recalls that hundreds of billions of naira had been collected and pillaged through stamp duty alone in the last few years without transparent and accountable explanation to Nigerians by the apex bank.
"Therefore, this CBN’s pronouncement, which is capable of becoming another cesspool of corruption, is wholly and roundly rejected, condemned and censured by all and sundry that have the country and its people at heart.
"We regret that the government had already lstrangled the people from any derivable benefit in healthcare, education, fuel subsidy and agriculture to the point that millions of Nigerians cannot afford decent living in whatever form.”
It, therefore, called on the CBN to immediately reverse “this draconian and unilateral decision that unjustifiably imposes extra burden on the masses amidst crunching economic circumstances”.
"Furthermore, we call on the national banker as a matter of principle and transparency, in lieu of further depleting the lean resources of struggling but resilient Nigerians, to provide detailed explanation of all the stamp duty charges accrued from the banks in the last 10 years.
"Therefore, we counsel the CBN to reconsider this ill-conceived policy and explore alternative solutions that do not further extend Nigerians to the dictates of capitalist institutions,” it added.