Banks to Charge Stamp Duties on Transaction

Fashion home!
The Central Bank of Nigeria (CBN) has directed Deposit Money Banks (DMBs) and other financial institutions to comply with the the provisions of the Stamp Duties Act by charging N50 on every N1,000 deposit or electronic transfer conducted by customers.


I heard this gist yesterday but didn't want to believe it especially after doing a mathematical calculation on the difference in the transaction when compared to COT charges. Little did I remember that there has never been a smoke without fire. I totally understand that as a Nation, we are broke and desperately doing everything possible to source revenues but I don't think it should be at the detriment of the citizens.

Just when I was about to appreciate the zero COT policy which is supposed to be effective this year, (though most banks are yet to abide by this), the CBN has come up with yet another policy to counter the end of COT charges and in this case, they have made it even worse but in a different name. N50 on every N1,000 deposit or electronic transfer conducted by customers! this must be a joke. Wait oh, for those that don't get this, permit to explain.

Going by the initial COT charge of N5 per Mille, if one makes a transfer of say N1,000,000, he will be charged N5,000 and this was before the reduction of COT charge to N1 per Mille last year. Going by the N50 stamp duty charge on transactions, if the same customer makes a deposit or electronic transfer of N1,000,000, he will be charged a whooping N50,000. Now you can imagine what the big players in business will suffer going by this new development. Even the little earners trying to manage whatever thing they get will now have to suffer more.

Like my yoruba brothers will say " Oma seeee o". Well, let us believe that this is one of those trial and error policies that will be wiped off in no distant time.

2 comments

Hello eye Naira, I believe we re getting this policy wrong, I want to believe the charge of N50 is on every deposit or transfer of N1,000 and above and not on every N1,000. What this means is that for a deposit of N1,000,000 and a deposit of N5,000 the bank still charges N50 as stamp duty. If then u make another deposit of N1,000,000 the bank takes another N50 and not N50,000 on a deposit of N1,000,000.

I also hope this post is not true oh.


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