Nigerian Government Orders Banks to Deduct Stamp Duty Charges from Savings and Current Accounts
In a bid to boost revenue and enhance fiscal performance, the Nigerian government has directed commercial banks to deduct a 0.375% stamp duty charge on mortgage-backed loans and bonds.
This move marks an expansion of the scope of stamp duty charges, which now includes foreign transactions, loans, and regular bank transfers.
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According to reports, Access Bank and other commercial banks have notified their customers of the new directive, which was issued by the Federal Inland Revenue Service (FIRS). The banks have assured customers that the new charges will not affect previously approved loans, which will continue to be repaid in full according to the agreed terms and conditions.
This development comes after the government directed banks to deduct stamp duty on foreign transactions between January 2021 and December 2023 by January 31, 2024. Prior to this directive, electronic money transfer levies were only charged on accounts receiving electronic deposits of N10,000 and above or its equivalent.
In a related development, Nigerian banks have begun implementing the Central Bank of Nigeria’s (CBN) revised guidelines on international money transfer operations. The CBN has instructed banks to pay dollars and other foreign currency payouts from abroad in naira, in a bid to boost forex supply and curb black market trading. The exchange rate for the naira payment will be at the prevailing rate in the Nigerian Foreign Exchange Market.
This move is seen as a significant step towards enhancing fiscal performance and boosting revenue in Nigeria. However, it remains to be seen how customers will react to the new charges, and how this will impact the banking sector as a whole.”
