Apex bank explains N50 stamp duty on bank transactions

The Central Bank of Nigeria (CBN) on Thursday interpreted to the members of the public what the implementation of stamp duty on bank transactions implies.

This is a response to the misconception that was noticed among members of the public.

The Director, Corporate Communications, CBN, Mr. Ibrahim Mu’azu, explained that the guidelines advised banks and other financial institutions operating in the country to commence the collection of N50 on eligible transactions only.

The implementation of the stamp duty came from a Federal High Court order that the CBN should direct the DMBs under its supervision to commence the collection of the duty on behalf of the Federal Government, in compliance with the provisions of the Stamp Duty Act 2004 and the Federal Government of Nigeria Financial Regulation of 2009.

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“Consequently, the DMBs have been directed to commence the collection of the duty thus: Banks are to collect the N50 stamp duty and above, remit same to the Nigerian Postal Services on behalf of the customer.”

“The N50 stamp duty is charged per transaction and not per volume. Hence, irrespective of the amount, the sum of N50 is to be charged provided such a transaction is N1,000 and above.”

Excluded are payment of salaries and wages, payments and deposits or self to self whether inter- or intra-bank.