Cybersecurity Fund: Deconstructing CADI B’s and Nuhu Ribadu’s Tax
DECONSTRUCTING CADI B’s AND NUHU RIBADU’s TAX FOR CYBERSECURITY
By Celestine Mel
According to data published by the CBN in its website, in 2022 alone, a total of N1,550,443,208,305,530.00 (One Quadrillion, Five Hundred and Fifty Trillion, Four Hundred and Forty-three Billion, Two Hundred and Eight Million, Three Hundred and Five Thousand, Five Hundred and Thirty Naira) passed through electronic payment channels within the Nigerian financial system.
An extrapolation of 0.5% of that amount would have accrued a tidy N7,752,216,041,527.65 (Seven Trillion, Seven Hundred and Fifty two Billion, Two Hundred and Sixteen Million, Forty-one Thousand, Five Hundred and Twenty-seven Naira and Sixty-five Kobo) to Nuhu Ribadu’s Cybersecurity Fund.
At the current exchange rate of N1,200 to $1, 0.5% of levy for 2022 transactions would have accrued $6.5 billion.
To put it in proper context, Burg Khalifa in Dubai, which is the tallest building in the world, cost $1 billion to build. It means that our dear NSA would have grossed the equivalent of six and a half Burj Khalifas for the purpose of providing cybersecurity for Nigeria. I mean, cybersecurity!
*CORRIGENDUM:* There are a few exceptions to the rule, which include intra-bank transfers, same customer transactions, loan repayments, bond and investment payments, etc.
Whatever be the case, it’s too much tax on an already crippled economy. Whomsoever came up with a percentage charge rather than fixed charge is wicked.
To start with, there is personal income tax. 7.5% VAT, N50 stamp duty, 1% withholding tax (for corporates), 10% consumption tax and now 0.5% cybersecurity tax.
Let us take the purchase of cars for instance. For every vehicle imported into Nigeria, a minimum tax of 45% of the cost price is paid to the NCS. Another 7.5% is paid as VAT and 1% Stamp duty.
The income used to pay for the vehicle is taxed progressively from 15% onwards. If I am buying a car worth N20 million from an auction site in USA, say copart.com for instance, I will pay N20 million first.
Then pay N9 million to NCS as duties. On all the transactions, I will still pay 0.5% to Ribadu & co (N145,000) as cybersecurity levy.
I will pay to ship the car to Lagos and then pay to ship the car to Abuja, after which I will pay the mechanics to fix the mostly accidented car.
Now tell me a better recipe for poverty in a struggling economy?
