As oil prices remain at its lowest levels in decades, Africa’s top oil producer Nigeria, is seeking innovative ways to reduce its reliance on the commodity and boost its non-oil revenue. It will, therefore, start enforcing its stamp duties law on financial transactions across commercial banks.
Last year, a local news platform quoted courier expert Dr. Asuquo Abianga to have said Nigeria can get a revenue of more than N3 billion ($15 million) from Stamp Duties.
The Stamp Duties Act requires that all written instruments, including instances where any property or interest in property is or are transferred or leased to any person, must be stamped.
The Central Bank of Nigeria (CBN) said in a circular on Tuesday, that Deposit Money Banks (DMBs) and other financial institutions should immediately start charging N50 ($0.2513) on all receipts given by any bank or other financial institution in respect of electronic transfer and teller deposits from N1,000 ($5) and above.
But not to worry. Payments, deposits or transfers to personal accounts by self (whether interbank or intrabank) are exempted from imposition of Stamp Duties. Any form of withdrawals or transfers from savings account is also not involved, and charges are only payable by receiving accounts.
To ensure strict monitoring of the process, the central bank has directed all commercial banks to open an account designated as NIPOST Stamp Duties Account into which all charges collected shall be paid, balances of which shall be transferred to a similar account at the CBN.
Other financial institutions can choose which bank they wish to remit their collections.