Cybersecurity Levy Can Bloat Education Costs Says ICT Scholars

Computer science scholars, including Director of Information and Communication Technology at Lagos State University, Prof. Toyin Enikuomehin, and Prof. Olumide Obe of the Federal University of Technology Akure, Computer Science Department, said the introduction of a cybersecurity levy will enhance the cost of education in Nigeria.

The Central Bank of Nigeria issued a directive on May 6 instructing deposit money banks to implement a 0.5 percent cybersecurity levy on electronic transactions, following the Cybercrime Act 2024 as amended.

However, President Bola Tinubu has reportedly ordered a review of the policy following concerns.

Enikuomehin told Punch that educational institutions may pass on the levy’s costs to parents, which would further post challenge on parents and triggered withdrawal of their wards.

“Parents who are already struggling to pay high school fees may face additional financial strain due to the cybersecurity levy. This can lead to difficulties in paying fees on time or even force some parents to withdraw their children from school.

“Educational institutions might pass on the cost of the cyber security levy to parents through increased school fees, exacerbating the financial burden on families.

“The additional financial burden might discourage parents from investing in their children’s education, potentially leading to reduced enrollment rates or a shift to more affordable, but potentially lower-quality, educational options,” he said.

Obe echoed these sentiments, warning that the levy could exacerbate inequalities in access to quality education.

He urged the government to “Implement measures to ensure the levy doesn’t disproportionately affect vulnerable populations.

"Investing the generated revenue in initiatives that benefit the education sector, such as digital literacy programs and cybersecurity awareness campaigns. Encouraging public-private partnerships to support educational initiatives and share the financial burden. By carefully considering these factors, the government can minimize the negative impacts and ensure the cybersecurity levy supports the growth and development of Nigeria’s educational sector.”