The Central Bank of Nigeria (CBN) has withdrawn the circular directing financial institutions like banks to implement a 0.5% cybersecurity levy: “Further to this, please be advised that the above referenced circular is hereby withdrawn.”
My Response: This is one of the weakest links we have in Nigeria. We promulgate policies without testing the impacts on human welfare gains and losses. Otherwise, the apex bank could have shown why reversing the policy would have hurt Nigeria, or did it not have any benefit to start with?
But when everything is done via circulars with no analytical rigours, there is really no defense. Sure, the parliament pushed the law, but even with that, CBN should have modeled the implications, before it took it up for implementation.
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This is the best outcome for Nigeria and what WE THE PEOPLE pushed for. Yet, we do hope that CBN returns to publishing working papers. America increased the top marginal income tax rate to 94% during WW2, and provided indicators on why that would help fund the war. Yes, rich man, would you prefer to be enslaved by the Nazis or pay-up to save your freedom?
In other words, what was the welfare gain around this policy to start with? And now that it has been withdrawn, what happens to that gain? We must govern with data, otherwise, it is nothing but a guesswork.
That said, my commendation to the government for making sure this is withdrawn, and I do hope there would not be an effort to sanitize, and re-introduce it. If Nigeria wants more money, Nigeria needs to help Nigerians become richer, and by doing that it can get more tax revenue.
The Central Bank of Nigeria, CBN has withdrawn the circular directing banks and other financial institutions to implement the 0.5 per cent cyber security levy.
The withdrawal of the circular was announced via a statement signed by Haruna Mustafa, Director, Financial Policy and Regulation, Department and Chibuzo Efobi, Director, Payment System Management Department.
The circular stated: “The Central Bank of Nigeria circular dated May 6, 2024 (Ref. PSMD/DIR/PUB/LAB/017/004) on the above subject refers. ‘
“Further to this, please be advised that the above referenced circular is hereby withdrawn.”
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If thieving requires so much intellectual rigour, you are not going to find many thieves, rather it’s a domain for shoddy jobs. They never told you the benefits of Cybersecurity levy other than the fact that the ONSA would have access to billions of naira, how the largesse will be shared is not for public consumption.
What we have in federal ruling class are nke m mere juo oyi group, wait for their next banger, and we will be here again screaming and analyzing.