Very commendable decision as the Nigerian government suspends cyber security levy policy

A very commendable move and thanks to the country’s national leadership: “Bola Tinubu has directed the Central Bank of Nigeria (CBN) to suspend the imposition of a 0.5% cyber security levy on electronic transactions following widespread criticism from various groups including SERAP had.” , BudgIT and 136 affected Nigerians who filed a lawsuit against the CBN.” This is how it is done when the government is there for the people. I praise the government for this.

This policy does not benefit the Nigerian people. It would lead to massive welfare losses as production costs would rise and Nigeria’s competitiveness would decline, even as it affected families and businesses.

It’s so bad that the senators who wrote the law are even against its implementation because no one can make sense of it: “Senator Ali Ndume also opposed the levy, citing concerns about an increased tax burden without an increase in income.”

I again call on the Central Bank of Nigeria to re-publish working papers so that our professors of Economics, Banking and Finance etc. can test their models and make suggestions. We need to move from our current circular model, which began in 2016, to a more nuanced, rigorous policy formulation, where our central bankers postulate in papers and we the people read them, digest them and know where they go.

As a young banker, I enjoyed reading the CBN Working Papers; I continue to implore the Apex Bank to return to this legacy. If this cybersecurity levy had been subject to a working paper review, someone would have recognized the apparent lack of welfare gains and pushed for minor changes. But with a circular model that we use today, we only practice in a command and control center with minimal rigor before policies are enforced. Take a good look, you’ve been undoing a lot of things lately.

How do you carry out this working paper unit? Take turns in the economics department of Nigeria’s leading universities and ask our professors to send you their short reports on policy-related topics. You don’t have to pay anyone; They are already paid and this is part of their job as a teacher.

Still, you need to hire some PhD students in economics, banking, etc. to run this department in the central bank, because you need more advanced knowledge systems to understand the professors’ suggestions. CBN: Try this model and avoid some of the recent own goals of the political somersault.

In this case, I commend the government for this call.

—

Register for the Tekedia Mini-MBA (June 3 – September 2, 2024) and join Prof. Ndubuisi Ekekwe and our global faculty; Click here.