CBN clarifies N50 stamp duty on bank transactions

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The Central Bank of Nigeria on Thursday explained some misconceptions among members of the public on the implementation of stamp duty on bank transactions. The CBN had, in a circular on Tuesday, urged Deposit Money Banks and other financial institutions to support the Federal Government in boosting its revenue through the collection and remittance of statutory charges on receipts to Nigerian Postal Service under the Stamp Duties Act.

Speaking with journalists in Abuja, the Director, Corporate Communications, CBN, Mr. Ibrahim Mu’azu, said the guidelines simply advised banks and other financial institutions operating in the country to commence the collection of N50 on eligible transactions only.

According to him, such eligible transactions include all receipts given by a bank or financial institution in acknowledgment of services rendered in respect of teller deposits and electronic transfers for the value of N1,000 and above.

Mu’azu hinted that the implementation of the stamp duty at this point in time emanated from a Federal High Court order that the CBN should direct the DMBs under its supervision to commence the collection of the duty on behalf of the Federal Government, in compliance with the provisions of the Stamp Duty Act 2004 and the Federal Government of Nigeria Financial Regulation of 2009.

Still on policy, local manufacturers are pleased with the Central Bank of Nigeria’s (CBN) forex policy, saying it has raised production capacity and enhanced their operations. Two leading local manufacturers in the packaging industry, acknowledged that the impact of the CBN policy on forex has more than doubled their productive capacities, helping them to meet increased demand for their products.

Deputy Managing Director, Tempo Paper Pulp & Packaging Limited, Nassos Sidirofagis, said since the policy’s implementation started, his firm has increased its production capacity from 50 per cent to 70 per cent. He said this raised their export volume and foreign exchange earnings for their firms and the economy.

He said the policy has helped manufacturers to realise the urgent need to expand because of increasing demand for their products. Sidirofagis said the company planned to start an expansion project due to expected increase in demand within this year and next.

“We have since developed capacity to also attract foreign investors, who we believe are exploring investment opportunities in our organisation. Therefore, on all sides this is a win-win situation for Nigeria and local manufacturers”, he said.

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