- Urges Tinubu to halt multiple taxations amid economic implications
By Tolúlopé Olátúnjí
Former President of the Christian Association of Nigeria (CAN), Dr. Samson Ayokunle, has called on President Bola Tinubu to stop the imposition of multiple taxes by federal and state agencies, warning that such measures are exacerbating the hardships faced by Nigerians.
Ayokunle, who also served as the president of the Nigerian Baptist Convention (NBC), made the appeal during an appearance on Channels Television on Friday, June 7, 2024.
He urged the President to open up the economy by mobilising investments into the agriculture and mining sectors, which he described as untapped goldmines.
Ayokunle stated emphatically: “Let’s delve into other aspects of our economy. Nigeria is rich, let’s explore, not just taxing, taxing. If you tax people, people will die,” he said.
Ayokunle’s comments come in the wake of widespread public discontent over new taxes introduced by the Tinubu administration, as Nigerians continue to grapple with the worst cost of living crisis in decades.
On May 6, 2024, the Central Bank of Nigeria (CBN) issued a directive, mandating all commercial banks to impose a 0.5% levy on certain electronic transactions. The collected funds are to be directed to the Office of the National Security Adviser (NSA) for cybersecurity purposes.
The levy, which implementation was programmed to commence in two weeks, is applied at the point of electronic transfer origination, and the deducted amount is reflected in the customer’s account with the narration, “Cybersecurity Levy.”
This directive aligns with the new cybercrime law signed by the President in February.
The CBN’s directive includes 16 exemptions, such as transfers between two customers of the same bank, transfers by an account holder to another of their accounts in a different bank, loan disbursements and repayments, salary payments, and various interbank and inter-branch transfers.
The New Diplomat however reports that following widespread condemnation, and a threatened showdown by labour unions, President Bola Tinubu asked the CBN to suspend the levy.
The Minister of Information and National Orientation, Mohammed Idris, announced the suspension after the Federal Executive Council (FEC) meeting on Tuesday, May 14.
Mr Idris said Tinubu had directed the CBN to suspend the implementation, and review the modalities for its implementation.
In addition to the suspended cybersecurity levy, Nigerians face several other charges, including stamp duty, Nigerian Inter-Bank Settlement System (NIBSS) charges, and Value Added Tax (VAT), on top of bank-imposed fees like maintenance and SMS charges.
Accordingly, this surge in taxation follows President Tinubu’s signing of four executive orders in July of the previous year, to curb multiple taxation.
Among these was the suspension of the 5% excise tax on telecommunication services and the escalation of excise duties on locally-manufactured products.
Furthermore, in May, the Presidential Fiscal Policy and Tax Reforms Committee announced plans to submit its tax policy recommendations to the National Assembly by the end of the third quarter of 2024.
These recommendations include new National Tax and Borrowing Policies set for implementation in September 2024, and proposed constitutional amendments effective from 2025.
The committee Chairman, Taiwo Oyedele, explained, “We’re at a point now where we’re drafting the laws, including possible amendments to the Constitution. We envisage that by quarter three, our documents will be ready to go to the National Assembly, and by the end of that Q3, we should have them enacted into law.”
Oyedele added that the Federal Government would exempt 95% of the informal sector from taxation, focusing instead on the 5% middle class and elite, declaring, “The days of being above the law in paying taxes are over.”
