Cybersecurity levy: Higher taxes don’t lead to sustainable growth – KPMG

KPMG Nigeria has advised the federal government to reconsider the implementation of the cybersecurity levy due, adding that higher taxes do not lead to sustainable growth.

The multinational professional services network stated this while reacting to the recent directives by the Central Bank of Nigeria (CBN) mandating deposit money banks (DMBs) to start charging a 0.5 percent cybersecurity levy on electronic transactions, in line with the Cybercrime Act 2024 as amended.

The firm added that although the idea was not new, it was unjustified under the prevailing economic condition.

According to the firm, unintended consequences of any measure must be thoroughly evaluated before implementation.

“Undoubtedly, Nigeria faces a significant revenue challenge. This has, therefore, constrained, and continues to constrain, the country’s capacity for achieving sustainable growth,” KPMG said.