More Burden on Nigerians as the Central Bank Slams Another Tax on Bank Customers

It will seem like there may be no respite soon for the toiling mass of Nigerians as they continue to be bombarded by all manners of taxes, tariffs and levies by the government and service providers with the latest being the introduction of a 0.5 per cent “cybersecurity levy” by the Central Bank of Nigeria (CBN). Earlier in the day, First Bank Nigeria Plc led others in the reintroduction of two percent processing charge on deposits above N500,000 and three per cent charge on amounts above N3,000,000 for corporate customers. The reintroduction of these charges is coming about four months after the Central Bank of Nigeria suspended such charges for cash deposits above N500,000. In a circular signed by Chibuzor Efobi, Director of Payments System Management and Haruna Mustafa, Director of Financial Policy and Regulation, the CBN said collection of the new levy shall commence in two weeks from yesterday, May 6th, 2024 and it shall be remitted to the Office of the National Security Adviser (ONSA). Even though the apex bank was silent on the use into which the ONSA will put the proceeds of the new tax to be paid by bank customers, it explained that deduction and collection of the cybersecurity levy is consequent upon the enactment of the Cybercrime (Prohibition, Prevention etc) Amendment Act of 2024. It was explained in the circular that Section 44 (2)(a) of the Act, provides for the collection of “a levy of 0.5% (0.005) equivalent to a half percent of all electronic transactions value by the business specified in the second schedule of the Act, is to be remitted to the National Cybersecurity Fund (NCF), which shall be administered by the Office of the National Security Adviser (ONSA).” It was further stated that the CBN shall rely on commercial, merchant, non-interest and payment service banks, as well as mobile money operators for the collection of the levy. It also stated that any defaulting institution that fails to remit funds collected shall be liable to a fine of not less than two percent of the annual turnover of the defaulting business. “Deductions shall commence within two (2) weeks from the date of this circular for all financial institutions and the monthly remittance of the levies collected in bulk to the NCF account domiciled at the CBN by the 5th business day of every subsequent month,” the bank stated.

Finance Minister Blames Buhari Administration’s Reckless Money Printing for Inflation Surge

In a startling revelation, the Minister of Finance, Mr. Wale Edun has pointed fingers at the Buhari administration for Nigeria’s current inflation crisis, attributing it to the irresponsible printing of money. During a session with the Senate Committee on Finance, Edun disclosed that between 2015 and 2023, the Central Bank of Nigeria printed a staggering N22.7 trillion for the Federal Government through Ways and Means overdrafts. Edun emphasized that this massive money printing spree was not accompanied by corresponding increases in productivity, leading to the inflationary pressures the country is grappling with today. He cited a lack of restraint in spending the N30 trillion amassed through Ways and Means under the previous administration as a significant factor contributing to Nigeria’s food and security challenges. Acknowledging the Senate’s resolve to investigate the utilization of these funds, Edun assured the committee of the government’s commitment to addressing the underlying causes of inflation and fiscal imbalance. He outlined measures aimed at bolstering revenue generation without resorting to unsustainable practices, such as excessive money printing or undue borrowing. Edun commended the Senate for its support in tackling fiscal challenges and pledged to address loopholes in import duty waivers to enhance the country’s fiscal resilience. Despite the current economic hurdles, he expressed optimism about the government’s ability to implement effective policies that would stabilize inflation rates and foster sustainable economic growth.