Nigeria suspends e-taxation after public uproar

In a major development, the Nigerian House of Representatives has directed the Central Bank of Nigeria (CBN) to suspend the implementation of the controversial cybersecurity levy, also known as the e-levy.

The decision came after a public outcry and concerns from Nigerians over the levy.
The levy highlighted the amount the Nigerian had to pay after each financial transaction.

The Central Bank of Nigeria has told financial institutions that the 0.5% levy is intended to raise money to improve cybersecurity.

The House said the apex bank’s circular was susceptible to misinterpretation as it appeared to contradict the provisions of the Cybercrime Act.

The House of Representatives adopted a motion of urgent public importance calling on the Central Bank to immediately withdraw its previous circular introducing the levy and issue a new one in accordance with the law.

Minority Leader Kingsley Chinda (PDP, Rivers), who moved the motion on behalf of all members, explained that Section 44(2a) of the Cybercrime Act lists the companies that are expected to pay the stipulated fees, which include GSM and Telecommunications companies, Internet service providers, banks and other financial institutions, insurance companies and the stock market.

Chinda explained that the CBN circular has caused concern across the country as it creates the impression that the levy is to be paid by Nigerians at a time when they are already grappling with the increased prices of petroleum products.

The House of Representatives’ decision to suspend the implementation of e-filing is a significant victory for the Nigerian public who have expressed their concerns and opposition to the move. The government’s responsiveness to public concerns is a testament to the strength of democratic principles and the power of collective action.

Moving forward, it remains to be seen how the government will respond to the cybersecurity concerns that led to the introduction of e-levying in the first place. However, this suspension is a clear sign that the government is ready to listen to the people and reconsider measures that could negatively impact the lives of Nigerians.

By Vincent Kubi