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CBN Orders Banks to Begin Charging of N50 NIPOST Levy for Bank Transactions

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The Central Bank (CBN) in a statement issued on Tuesday has ordered Nigerian banks to start the collection of N50 levy for some electronic transactions at every financial institution nationwide.

CBN said the decision was made in a bid to boost its revenue base, as the Federal Government is exploring revenue opportunities in the non-oil sectors, especially taxes and rates.

“It is in recognition of this fact that banks and other financial institutions are enjoined to support government’s revenue generation drive through compliance with the provisions of the Stamp Duties Act LFN2004, as reinforced by the court judgment in suit no. FHC/L/CS/1710/2013.”

“With immediate effect, all DMBs and other financial institutions shall commence the charging of N50 per eligible transaction in accordance with the provisions of the Stamp Duties Act and Federal Government’s financial regulations 2009, that is, all receipts given by any bank or any other financial institution in acknowledgement of services rendered in respect of electronic transfer and teller deposits, from N1000 and above.”

“For the avoidance of doubt, the following receipts are, however, exempted from imposition of Stamp Duties: (a) payments, deposits or transfers by self to self, whether inter- or intra-bank; and (b) any form of withdrawals/ transfers from savings accounts”.

“It should be noted that these charges are only payable by receiving accounts,” the Central Bank noted, adding: “Each DMB shall open an account designated as capital NIPOST Stamp Duties Account into which all charges collected shall be paid.”

“The balance in such accounts shall be transferred monthly by the DMBs to CBN NIPOST Stamp Duty Collection account number 3000047517. The Central Bank said other financial institutions shall remit their stamp duty collections to any DMB of their choice.

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