The Chairman of Tekedia Capital, Prof. Ndubuisi Ekekwe has faulted the Central Bank of Nigeria (CBN) for withdrawing the circular, which directed financial banks to implement a 0.5% cybersecurity levy.
The CBN had, on Monday, withdrew the circular earlier issued to banks to implement a 0.5% cybersecurity levy.
According to the apex bank in a new circular, “Further to this, please be advised that the above-referenced circular is hereby withdrawn.”
However, in his response to the development through his X handle @ndekekwe, Ekekwe faulted Nigerian government for promulgating “policies without testing the impacts on human welfare gains and losses.”
ALSO READ CBN reverses circular on cybersecurity levy
He observed that even with the passage of the law by the National Assembly (NASS), the “CBN should have modeled the implications, before it took it up for implementation.”
“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.
“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 And now that it has been withdrawn, what happens to that gain?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“That said, my commendation to the government for making sure this is withdrawn, and I do hope there would not be an effort to sanitize, and re-introduce it.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,” Ekekwe tweeted.
