Uwaleke Urges CBN to Withdraw Circular on Cybersecurity Levy, Says It’s Ill-timed

Ndubuisi Francis in Abuja 

A former Commissioner for Finance, Imo State, Prof. Uche Uwaleke has urged the Central Bank of Nigeria (CBN) to immediately withdraw the new circular directing banks to charge 0.5 per cent levy on electronic transactions. 

According to him, such withdrawal was against the backdrop of assurances by the government that its plan to increase revenue would not include introducing new taxes or increasing tax rates.

Reacting to the apex bank’s directive in a comment made available to THISDAY, Uwaleke who is the Director of the Institute of Capital Market Studies, Nasarawa State University, described the levy as ill-timed, coming at a time when the CBN is concerned about the high rate of financial exclusion and the increasing rate of currency circulating outside the banks.

The levy, he argued, carries the downside risk of discouraging financial intermediation as well as complicating the transmission of monetary policy with more people shunning the banks due to high charges. 

The end result, he noted, is that it makes difficult effort by the apex bank to tame inflation.

“I think the cybersecurity levy is ill-timed, coming at a time when the CBN is concerned about the high rate of financial exclusion and the increasing rate of currency circulating outside the banks.

“It carries the downside risk of discouraging financial intermediation as well as complicating the transmission of monetary policy with more people shunning the banks due to high charges. The end result is that it makes difficult effort by the CBN to tame inflation.

“So, I think the circular should be withdrawn especially against the backdrop of assurances by the government that its plan to increase revenue would not include introducing new taxes or increasing tax rates.

“To this end, the government should suspend the policy while getting set to implement the recommendations of the Presidential Committee on Fiscal Policy and Tax Reforms whose mandate includes streamlining multiple taxes and levies currently inhibiting the growth of businesses in Nigeria,” he said.