In the general elections of 2023, Peter Obi, the presidential candidate of the Labour Party, has sharply criticized President Tinubu’s administration for imposing a Cyber-Security Levy on Nigerian citizens. Obi contends that considering the nation’s current economic difficulties, this new tax is not only unnecessary but also poorly designed.
Instead of creating the circumstances necessary for recovery and growth, Obi claims that the government is more concerned with taking more money out of an already fragile economy. This critique is part of a larger issue about the administration’s economic policies, which Obi claims have repeatedly increased citizen financial burdens and reduced national competitiveness.
The newly implemented Cyber-Security Levy, which levies additional charges on financial activities, is the focal point of the debate. In a statement posted to his social media account, Obi expressed his worries and questioned the logic of converting the National Security Adviser’s office into a tax collection agency. He voiced shock and worry over the choice to give certain tax dollars to a department that is usually more concerned with national security than finances.
“The government’s intention to plunder a collapsing economy rather than fostering its revival and expansion is demonstrated by the imposition of yet another tax, the Cybersecurity Levy, on Nigerians who are already facing extreme financial hardship,” Obi said. He underlined that this action results in various taxes on banking transactions, which are already burdened with various taxes including stamp duties. Obi argues that this contradicts the government’s previous commitments to reduce the tax burden and streamline the fiscal system.
Additionally, Obi emphasized how this tax would be especially detrimental to the business community. He emphasized that the tax is levied on the trade capital of companies rather than their earnings, which may cause capital to further erode in the face of issues like the depreciation of the Naira and rising rates of inflation. He argues that this is ineffective at a time when tax reductions should be the government’s main tactic against inflation.
An ex-lawmaker echoed this position, saying that although the Cybersecurity Levy may have been implemented with the intention of securing digital transactions and enhancing national security, the timing and lack of strategic communication have resulted in confusion and criticism. The former congressman made the argument that putting such a levy into place without a clear and transparent explanation of its benefits and necessity only serves to deepen public mistrust in the government’s economic policies.
