Menu

The Central Bank of Nigeria has directed banks and financial institutions to collect Stamp Duties on bank deposits and transfers, effective immediately.
 
In a circular to all deposit money banks (DMBs) and financial institutions, customers are to be charged N50 in accordance with the Stamp Duties Act 2004 and Federal Government Financial Regulations 2009. Banks are to charge the fee on all electronic transfers and deposits from N1,000 and above into any  account, except savings accounts or when a customer makes deposits or transfers to self.  

The directive for the collection of these charges is in line with the revenue generation drive of the administration of President Muhammadu Buhari. The slump in the prices of oil, which accounts for over 70 percent of government revenues, has negatively impacted the government's fiscal position. Oil prices still remain low at below $30 per barrel as the International Monetary Fund, on Tuesday, cut global economic growth forecast by 0.2 percentage point, thereby forecasting 3.4 percent growth in 2016 and 3.6 percent in 2017.

The proposed federal government 2016 budget has a revenue projection of N3.86 trillion, out of which oil revenues will be N820 billion and non-oil revenues will be N1.45 trillion. Non-oil revenues are to be sourced from Company Income Tax (CIT), Value Added Tax (VAT), Customs Duties and Federation Account levies. According to the CBN, the Stamp Duties will contribute to the non-oil revenues of the government.

"As part of its efforts to boost its revenue base, the Federal Government of Nigeria is exploring revenue opportunities in the non-oil sectors especially taxes and rates," the CBN wrote in the circular.   

Banks have been directed to open NIPOST Stamp Duties Accounts into which all the charges will be paid. On a monthly basis, the banks will transfer the balances in the accounts to a designated account with the CBN.