By: Ridwan Badmus
The new tax is planned as authorities cracks down on crypto currencies, which they blame for the weakness of the Nigerian currency.
The minister for information, Mohammed Idris announced that “The implementation of the cyber security tax policy should be put on hold as directed by the government”.
The civil society had previously opposed the imposition of the tax.
On the 9th, May 2024, the Nigeria Economic Summit Group(NESG), expressed concerns about the timing point of tax application with 0.5 percent cyber security tax levy on electronic transactions by the Central Bank of Nigeria(CBN). Subsequently, the CBN was said to have issued circular to various financial institutions, commercial banks, interest free and payment services announcing the cyber security tax
Due to the concerns over multiple taxes and inflationary pressures on Nigerians, the NESG in a statement called on the Federal Government to review the decision. The group emphasizes that, in the context of rising inflation and financial exclusion, the timing of a cyber security tax is appropriate given the current cost of living crisis and the increase in money circulation bad.