A good relationship with your bank is important, especially in this new cashless era where individuals and businesses rely on Internet banking, Mobile banking and Debit / Credit cards for transactions as small as purchase of airtime, bill payments, shopping and more.
Judging by the number of public complaints from customers of Nigerian banks one could say the Hate is real especially at the end of the month when transaction alert charges are deducted automatically. Charges of 100 Naira for sending money inter-bank transfers is a normal thing but nothing could prepare Nigerians for the New Charge of 50 Naira for receiving Money.
The Hate became real but before we blame the banks for this new charge lets take a moment to understand what the charge is for and why it was introduced.
What is Stamp Duty Charge?
In line with the Federal Government of Nigeria non-oil sector revenue generation drive, A Letter from the Central Bank of Nigeria dated 15th January, 2016 and backed by Stamp Duty Act LFN 2004 and a court ruling on in 2013 authorized all Deposit Money Banks (DMBs) and other financial institutions to collect 50 Naira charge.
What transactions attract 50 Naira Stamp Duty Charge?
All received credit alerts to your bank account (current or savings) attracts a 50 Naira stamp duty charge.
The Receiver pays the 50 Naira, not the sender. So you don’t get charged stamp duty for debit transactions.
Where does all revenue from Stamp Duty Charges go?
All stamp duty charges collected by Deposit money banks and other financial institutions are paid into the Nigeria Postal Service (NIPOST) collection account with the Central Bank of Nigeria 3000047517.
What the federal government chooses to do with this new revenue stream is yet to be established.
How to Avoid or Minimize Stamp duty Charges
- Businesses that accept payments from customers to their accounts can choose to add 50 Naira to cost of goods / services.
- Individuals that deposit money daily or weekly can reduce stamp duty charges by accumulating cash before depositing all at once.
NOTE: Bank charges for Transfers to third party has now been reduced from 100 Naira to 50 Naira (minus VAT).
Read the full Text of the CBN Letter to Banks on Stamp Duty Collection (PDF)
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