The Lagos Chamber of Commerce and Industry, LCCI, has called on the government to reconsider the implementation of the directive by the Central Bank of Nigeria, CBN, to implement section 44 of the Cybercrime Act 2024, which imposes a 0.5% cybersecurity levy on Nigerians.

In a statement signed by the Director-General of the Lagos Chamber of Commerce and Industry, LCCI, Dr. Chinyere Almona, the directive will burden individuals and businesses more amidst unsettling operating performance challenges. 

The LCCI noted that the upward review of the electricity tariff has not brought about a commensurate boost in power supply to justify the additional costs to individuals and businesses. 

It called for the directive to be withdrawn and called for more consultations with critical stakeholders.

The statement further read, “At a time when government revenues are at record levels from higher crude oil prices, higher revenues accrued to the Federal Allocation Account, and saved resources from the stoppage of subsidies; we expect to see projects created to enhance the living standard of the people as a dividend of democracy for the sacrifices made by Nigerians. In the face of biting inflation that has continued to weaken the purchasing power of consumers and with companies burdened with a rising cost of production, any further imposition of additional cost burden will slow down economic activities and drag our economic growth drive.”

LCCI argued that since the levy collection cannot guarantee the protection of payers from cyber-attacks, it was difficult to justify its collection at this time. 

The trade group pointed out that the collection approach with some exemptions can create confusion regarding what transactions really qualify for the exemptions. “Implementing this directive can gradually encourage some people to return to holding cash to avoid paying the levy. This can negatively impact the achievement already recorded with the cashless policy,” the statement added.

The statement also urged the government to work towards amending the enabling law to reflect current realities, initiate programmes that reflate the economy, and invest more in digital infrastructure to support business operations. 

It raised concerns over the levy's remittance to the Office of National Security Adviser (ONSA) and the place of transparency in the use of the funds to strengthen the cybersecurity architecture and guarantee cyber-safety for technology users in Nigeria.

The LCCI also urged the government to harmonize its tax initiatives with the work done by the Presidential Committee on Tax and Fiscal Reforms to prevent multiple taxations and poor coordination of the expected new tax regime.