FG Directs Access, Zenith, UBA, Others to Begin Key Deductions From Savings, Current Accounts

• The Nigerian government has directed commercial banks to begin deducting stamp duty charges on mortgage-backed loans
• The new directive comes as the government seeks to ramp up revenue and boost fiscal performance
• Commercial banks notified their customers of the new charges, but clarified the latest initiative does not affect previously approved loans

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Nigerian government has directed commercial banks to immediately deduct a 0.375% stamp duty charge on all mortgage-backed loans and bonds.

Mortgaged-backed loans are facilities given by financial institutions to individuals entitled to acquire a home and repay over time with interest, while bonds are debt or securities issued by governments, municipalities, corporations, or other entities to raise capital.

Access Bank, others send message to customers

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The commercial banks sent messages to customers informing them of the new directive, saying that the Federal Inland Revenue Service will make the deduction.

Reports say the move indicates that the government is expanding the scope of stamp duty charges to include foreign transactions, loans, and regular bank transfers as part of tax authorities' efforts to boost fiscal performance.

FG directs deductions on electronic money transfer

In January this year, banks were directed to deduct stamp duty on foreign transactions between January 2021 and December 2023 by January 31, 2024.

Before the new directive, electronic money transfer levy was charged only to accounts receiving electronic deposits of N10,000 and above or its equivalent.

TheCable reports that one of Nigeria’s commercial banks, Access Bank, notified its customers of the new directives in a message on Thursday, May 2, 2024.

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New directive does not affect approved loans

The statement reads:

“In compliance with this directive, we have streamlined the process to make transactions more convenient for you.

The bank clarified that the directive did not affect previously approved loans, which will still be repaid in full according to the agreed terms and conditions.

Banks to pay customers' money

Legit.ng previously reported that Nigerian banks have begun full implementation of the Central Bank of Nigeria's revised guidelines on international money transfer operations in the country.

The CBN released revised guidelines for the operations of International money transfer operators (IMTOs) and instructed banks to begin paying dollars and other foreign currency payouts from abroad in naira to boost forex supply and starve the black market traders.

The apex bank also noted that the exchange rate for the naira payment shall be at the prevailing rate in the Nigerian Foreign Exchange Market.

Source: Legit.ng