CBN says the N50 POS charge you pay is illegal and you are being cheated

The CBN wants you to know that that N50 you are charged when you pay with POS, is a scam actually. Errr...

Godwin Emefiele is Governor of the CBN. Picture taken on July 24, 2015. REUTERS/Afolabi Sotunde

You ask why and you are told it's a new directive from the Central Bank of Nigeria (CBN) to all banks.

So, you nod slowly and reluctantly comply. Sometimes, you are enraged, but mutter under your breath, pay and disappear for another time.

The CBN has now said the payments of N50 charged by merchants who use Point of Sale (POS) machines for cashless transactions is illegal.

The apex bank is advising that nobody should pay an extra dime on goods and services.

The CBN has explained that the N50 stamp duty is a fee regulated by an act that directs merchants--and not customers--to pay all necessary taxes as regulated by government agencies.

On a ChannelsTV breakfast program, CBN's Director of Payment System Management, Musa Jimoh, says the apex bank issued a circular which merchants have conveniently misinterpreted.

“Stamp duty has been misinterpreted, our circular that talks about merchants paying stamp duties according to the law do not say that the stamp duty should be paid by the consumer; that is a misrepresentation of CBN directive. What our directive says is that merchants should pay all necessary tax as regulated by government agencies including stamp duty.

“What we told the merchants is that we would like the banks to ensure that the merchants comply with this directive by ensuring that every single payment that customers make to them, the merchants pay the regulated stamp duty of N50.

“What has happened is that they have actually transferred this fee blatantly and openly to the consumers; this is very wrong. No single individual should pay N50 in addition to the cost of the goods," says Jimoh.

He adds that “stamp duty is not to be paid by individuals that are consuming the goods and services of the merchants, the merchants who are receiving the money are the ones who are supposed to pay.”

But how on earth did the CBN expect merchants not to transfer the extra charges to the consumer, seeing as they are no NGOs or charities?

Jimoh explains that since the stamp duty is not regulated by the CBN, it can't be stopped at this point.

“Stamp duty is not a CBN regulated fee, it is a fee regulated by an act, and so we can’t change or push anything in that direction.

"To this, the stamp duty remains and cannot be changed by the CBN. What we are doing is to ensure that the institutions we regulate (the banks) become more responsible to ensure that these fees are collected and given to the government," he says.

Ok then. So, what now? Confused much?

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

'What has happened has happened,' Lagos church backs Sanwo-Olu's 'walk of peace'

'What has happened has happened,' Lagos church backs Sanwo-Olu's 'walk of peace'

UK will continue to process work, student visas for Nigerians despite Omicron ban

UK will continue to process work, student visas for Nigerians despite Omicron ban

Niger Government pays N400m backlog of 2019/2020 debt to NECO

Niger Government pays N400m backlog of 2019/2020 debt to NECO

Yahaya Bello gets another endorsement to run for President in 2023

Yahaya Bello gets another endorsement to run for President in 2023

'I facilitated N60 million COVID-19 intervention fund for constituents' - Sen Dadu'ut

'I facilitated N60 million COVID-19 intervention fund for constituents' - Sen Dadu'ut

FG says no economic development without transportation

FG says no economic development without transportation

Fresh PVC registration applications hit 4.5 million

Fresh PVC registration applications hit 4.5 million

Lagos State First Lady unhappy about Sylvester Oromoni's death

Lagos State First Lady unhappy about Sylvester Oromoni's death

Terrorist attacks forced 11,500 Nigerians to run into Niger Republic last month

Terrorist attacks forced 11,500 Nigerians to run into Niger Republic last month