Access, UBA, GTB, Zenith, Others Send Message to Customers As FG Orders Deductions on Bank Accounts

• Commercial banks have announced to customers that they will begin deducting stamp duty charges on mortgage-backed loans
• The banks said the deduction is in obedience to a federal government directive as it seeks more revenue
• The banks have explained that the stamp duty charges do not affect previous loans and will only be for new loans

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Commercial banks across Nigeria have sent messages to customers informing them of the implementation of new stamp duty deductions.

These deductions are applicable to specific transactions that necessitate duty payments, including contracts and legal mortgages and bonds.

Mortgage-backed loans represent offerings from financial institutions to individuals seeking to purchase a home, allowing them to repay gradually with interest.

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On the other hand, bonds are debt instruments issued by various entities like governments, municipalities, or corporations to procure funds.

FIRS instruct banks

Legit.ng had earlier reported that the Federal Inland Revenue Service (FIRS) has instructed banks to begin the deduction on customers account and remit to government accounts.

The move comes as part of federal government efforts to bolster revenue generation and ensure compliance with financial regulations.

Banks notify customers

In adherence to the FIRS directive, commercial banks in Nigeria have initiated the process of notifying customers on the charges.

In a notice from Access Bank to its customers it said that a 0.375% charge would be applied to loans backed by legal mortgage, shares, debentures, or bonds.

The message reads:

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

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“To this end, a stamp duty charge of 0.375 per cent will be applied to loans backed by legal mortgage, shares, debentures, or bonds. The charge will be applied on the value of the Legal Mortgage, Shares, Debentures or Bonds and remitted to the Federal Inland Revenue Services.

“However, all previously approved loans will remain unchanged and should be repaid in full as per the agreed terms and conditions,” the bank notified its customers."

Man explains the CBN's 0.5% cybersecurity levy

Meanwhile, Legit.ng has reported that a man had broken down the CBN's new 0.5% cybersecurity levy directive to commercial banks.

Sharing his thoughts on the new initiative, @OurFavOnlineDoc, a Nigerian medical professional in the diaspora, said it was "crazy at this point."

Lamenting on X, @OurFavOnlineDoc described it as mass financial stifling. He went on to break down what it meant for Nigerians.

Source: Legit.ng