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CBN orders Stamp Duty Collection on Savings Accounts
Banks are no longer restricting the deduction of stamp duty on deposits made into current accounts, but now apply it to deposits made into savings accounts, investigation has shown.

The Central Bank of Nigeria had through a circular issued on January 15, 2016 directed the Deposit Money Banks to deduct N50 stamp duty on each deposit made into current accounts with a value of N 1000 and above in order to boost government’ s revenue drive and in compliance with Stamp Duties Act, 2004.

The apex bank anchored its directive on a court ruling obtained by Kasmal International Services Limited in 2014 to the effect that the 22 banks operating in the country should remit more than N 6 tn to the Nigerian Postal Services through the company as the stamp duty they were supposed to have collected since the Stamp Duties Act was passed into law.

However , the CBN exempted savings accounts from the deduction of stamp duty .

The circular stated, “ 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 the Federal Government’ s Financial Regulations 2009 ; that is, all receipts given by any bank or other financial institution in acknowledgement of services rendered in respect of electronic transfers and teller deposits from N1,000 and above.

“ For the avoidance of doubt, the following receipts are , however , exempted from the imposition of stamp duties : payment deposits or transfers by self to self , whether inter or intra bank; and any form of withdrawals / transfers from savings accounts. ”

Investigation by our correspondent, however , showed that the banks had extended the deduction of the stamp duty to savings account transactions.

It was gathered that the Nigerian Postal Services , the implementation agency of the Stamp Duties Act, was against the exemption of any bank account except savings accounts held by children.

It was not clear as of press time when the collection of the duty was extended to savings accounts, but some bankers who spoke to our correspondent on condition of anonymity said the only exemption were deposits made by the owners of savings accounts.

This means that when a third party makes a deposit into a savings account with a value of at least N1, 000 , the sum of N50 is automatically deducted as stamp duty, which the bank has a responsibility to transfer to the NIPOST Stamp Duty Account domiciled with the CBN.

The Lagos Division of the Appeal Court had ruled that imposing a stamp duty on electronic transactions was illegal.

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Ruling on an appeal filed by Standard Chartered Bank against Kasmal International Services Limited and 22 others, Justice Ibrahim Saulawa and four other justices of the Court of Appeal , Lagos Judicial Division , held that the Stamp Duties Act, 2004 did not impose a duty on the DMBs to deduct N 50 on bank deposits .

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United Kingdom Accepting Naira Payments from Nigerian Business Owners

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United Kingdom Accepting Naira Payments from Nigerian Business Owners

United Kingdom Accepting Naira Payments from Nigerian Business Owners

Former President of the Nigerian-British Chamber of Commerce (NBCC)Dapo Adelegan, has announced that the British Government will henceforth begin accepting Nigerian currency from Nigerian business owners in the UK.

Adelegan made the assertion in an interview on Wednesday in Lagos.

The British Government on February 9, through its export credit agency, UK Export Finance (UKEF), said it will accept Naira payments from Nigerian business owners trading with the UK.

Adelegan said that the initiative was a monumental step that will deepen trade, open more opportunities, expand patronage and market scope of products from both countries.

“If we look at the quality of manufactured equipment and technology; Made-in-Britain is number one.

“Through this, we will access technology transfer, boost the capacity of workforce and impact on our outputs of consumables and products in the market.

“It is a win-win situation that will go beyond procurement, as there are multiple layers of benefits that this will bring to the economy,’’ Adelegan said.

Joyce Akpata, Director-General, Nigerian-American Chamber of Commerce (NACC), also said the initiative will ease importation of goods from the UK to Nigeria and strengthen economic ties.

“The UK has the largest concentration of Nigerians in the diaspora and given cultural ties, it is something that should have happened before now,’’ Akpata said.

The director general said the initiative would improve knowledge sharing and technology transfer.

“We will see a lot of businesses in the UK supplying equipment and machinery backed by this finance to their Nigerian counterparts.

“This will enhance the activities of manufacturers, especially the growing SMEs that are into processing.

“It will also take off issues of foreign exchange challenges and instability in the market,’’ she said.

Akpata noted that the scheme would be a welcome opportunity for most Nigerian businesses that could not access financing locally.

She urged other countries, especially the United States, to take a cue from the UK to evolve initiatives that will assist businesses to maximise opportunities and strengthen trade ties.

Trade experts put the value of trade between Nigeria and the UK at about £8 billion, with oil and gas making up 60 per cent of the figure.

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South Africa’s Embattled President Jacob Zuma resigns

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President Zuma must face corruption charges - Supreme court rules

South Africa’s Embattled President Jacob Zuma resigns

The embattled President of South Africa, Jacob Zuma has resigned his office with immediate effect.

Zuma made the announcement in a televised address to the nation on Wednesday evening.

Earlier, Mr Zuma’s governing ANC party told him to resign or face a vote of no confidence in parliament on Thursday.

The 75-year-old has been under increasing pressure to give way to Deputy President Cyril Ramaphosa, the ANC’s new leader.

Mr Zuma, who has been in power since 2009, faces numerous allegations of corruption.

His resignation came at the end of a long speech in which he said he disagreed with the way the ANC had acted towards him.

He said he did not fear a motion of no-confidence, adding: “I have served the people of South Africa to the best of my ability.”

According to President Zuma, violence and division within the ANC had influenced his decision to step down.

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I Have no Candidate for 2019 Elections : Obasanjo

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Obasanjo denies attending PDP convention committee inauguration

I Have no Candidate for 2019 Elections : Obasanjo

Nigeria’s former President Olusegun Obasanjo has claimed that he has no candidate for any political office in the 2019 general elections.

The outspoken politician made the statement while speaking to a group of political group paid him a visit at his home in Abeokuta yesterday February 7th, Obasanjo said he would remain an elder statesman with a passion for a greater Nigeria.

According to Obasanjo, his statement on President Muhammadu Buhari was not meant to disrespect the office of the president or embarrass him, but rather to articulate his views about the situation in the country and offer his candid advice. In his words;

‘In the year 2015, I said I would no longer participate in partisan politics. And I still stand by my decision.

Everybody, irrespective of his or her political affiliation is free to come here for advice. I will gladly do that.

I have no candidate, whatsoever, for any political office. I just believe that things must be done differently in Nigeria to get a different result.

If you study our transitions since the colonial era, they have all taken place without taking the people of the grassroots into consideration. So, CNM is about the people at the grassroots.

It is a socio-economic movement where youth and women, especially, will be given the opportunity to appreciate their interests and power.

Unlike before, I believe we must put the horse before the cart. If the system and the platform sync, I believe Nigeria will get there. And like I said, the moment the coalition gets involved in candidate sponsoring or participates in partisan politics, I will opt out of it.”he said.

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