FG directs Nigerian banks to start key deductions from savings, current accounts

The Federal Government (FG) has directed all commercial banks in the country to with immediate effect, deduct a 0.375% stamp duty charge on all mortgage-backed loans and bonds.

What are mortgaged-backed loans?

They are facilities given by banks to individuals entitled to buy a home and repay over time with interest, while bonds are debt or securities issued by governments, municipalities, corporations, or other entities to raise capital.

The banks sent messages to customers, telling them of the new directive, adding that the Federal Inland Revenue Service (FIRS) will make the deduction.

This shows that FG is expanding the scope of stamp duty charges, and this applies to foreign transactions, loans, and regular bank transfers as part of tax authorities' efforts to boost fiscal performance.

Stamp duty on electronic money transfer

Before the new directive by the FG to impose stamp duty on electronic transfers, electronic money transfer levy was charged only to accounts receiving electronic deposits of N10,000 and above or its equivalent.

The Access Bank, sent messages to customers of the new directives on Thursday, May 2, 2024, which read: “In compliance with this directive, we have streamlined the process to make transactions more convenient for you."

The bank explained that the directive did not affect previously approved loans, which will still be repaid in full according to the agreed terms and conditions.

BEB