Cyber security fee will trigger banking apathy among Nigerians – Economist

Prof. Uche Nwogwugwu of the Department of Economics at Nnamdi Azikiwe University, Awka, has advised the federal government against the implementation of the newly introduced cyber security fee on bank transactions.

Nwogwugwu, who described the new fee as “additional stress” on the income and capital of households and businesses, said it was not necessary as the business of security money in the banking space is laid with banks.

He told the newsmen in Awka on Friday that transaction charges on money in the formal sector would trigger a ‘bank run’ and frustrate the capital mobilisation of banks.

Nwogwugwu, who is the Director of International Collaboration and Linkages at the university, said no economy survived with the multiplicity of taxes and levies Nigerians were subjected to.

“I am not sure any economy will survive with policies that take money away from the masses.

“Already, people are grappling with inflation, which is a form of tax, because it reduces the amount of disposable income available to them. Now the government is introducing cyber security fees on the same diminished income.

“The business of government is to put money in the hands of citizens so they can save and invest. After that, you can tax their profits and not tax money away from them. What does the government really want to do with the money from these taxes?

“This policy has the capacity to shake the entire financial system and cause a bank run because 80 percent of all the transactions in the country go through the banking system,” he said.