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PoS Operators Lament CBN’s N50 Stamp Duty Charges, Call For Review

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CBN
  • PoS Operators Lament CBN’s N50 Stamp Duty Charges, Call For Review

The Central Bank of Nigeria’s policy of N50 charges on every individual transaction above N1,000 carried out on the point of sales (PoS) machine has received heavy criticism from agent banking service providers.

The individual transaction and withdrawal through the use of (PoS) machine have enhanced and eased the banking system and also reduced the number of customers that visit the banking hall, queues at bank counters and the ATM machine centres.

The recent policy by the apex bank could be seen as a disastrous move mainly for the merchants, filling stations and supermarkets across the nation which also affected the enjoyment of cashless transactions.

The Effect of N50 PoS Charges

The N50 charge imposed on individual transactions above N1,000 is currently having negative effects since its implementation on September 17, 2019.

Agent banking service providers have been on the receiving end since the implementation of the policy with the mass exodus of bank customers who have resulted back into their conventional way of doing transaction and withdrawal.

The agent banking service providers lamented that the volume of electronic payments carried out daily had reduced drastically as a result of the new policy.

Also, many filling stations in Lagos and Ogun states expressed their dissatisfaction with the policy, explained that customers are reluctant in paying the N50 stamp duty which is really affecting sales.

Meanwhile, many Supermarkets in Lagos have refused to implement the new policy for the fear of how it will affect their sales and patronage.

The CBN New Policy 

On September 17, 2019, the apex bank issued a circular which it authorised the banks to unbundle merchant settlement amounts and charge applicable taxes and duties on individuals as it reviewed the merchant service charge from 0.75 per cent (capped at N1,200) to 0.50 per cent (capped at N1,000).

The CBN directed all PoS and web processing officers to ensure that stamp duty was correctly processed daily by downloading transactions valued at N1,000 and above, multiply the count of these transactions by N50 and pass the corresponding debit to the respective merchant accounts.

Reactions To The N50 PoS Charges

The operators under the aegis of Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) and business owners have all reacted to the new policy, all pleading that it should be reviewed.

According to the association president, Victor Olojo said the CBN’s policy is discouraging and will affect the apex bank’s efforts in encouraging cashless policy.

“It has grossly affected transactions. People now prefer to go back to the Automated Teller Machines rather than the PoS because of the charges.

“It is a big issue for us and we feel that the government needs to listen; that policy should be reversed. We have written a letter of protest to the CBN and other relevant stakeholders. We feel that the policy is anti-people because it is the same government that is driving financial inclusion that is also imposing this tax that is affecting those at the base of the pyramid.” he said.

Also, a mobile money operator with agents in five locations in Kwara and Oyo states, Mr Oluwasegun Abbey in an interview with PUNCH said the volume of transactions has reduced since the introduction of N50 stamp duty on individual payments.

He said, before the new policy, he conducted between 800 and 900 transactions daily across the five locations but it has reduced to between 600 and 700 daily.

Recall that the Nigeria interbank Settlement System (NIBSS) earlier this year released report revealing how the online transaction has increased and reduced the number of payment made by cheque.

According to the reports, the volume of transactions on PoS terminals across the nation rose to 187.7 million and the financial payments on the terminals were valued at N1.38tn.

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Insurance

Heirs Insurance Group Unveils Revolutionary Website for Seamless Insurance Experience

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Heirs Life Assurance- Investors King

Heirs Insurance Group has launched a website designed to revolutionize the insurance experience for its customers.

With a focus on simplicity, accessibility, and personalized service, the new website aims to streamline the process of obtaining insurance coverage and empower customers to make informed decisions about their insurance needs.

The website boasts a range of innovative features that make navigating insurance options easier than ever before.

From simple and intuitive navigation menus to personalized insurance recommendations, the website is designed to guide customers through every step of the insurance process quickly and efficiently.

According to Ifesinachi Okpagu, the Chief Marketing Officer of Heirs Insurance Group, the new website embodies the company’s commitment to delivering exceptional customer service.

“Today’s customers want simplicity, and this new website delivers on that request,” Okpagu said. “We are empowering customers to take control of their lives, their businesses, assets, and their most cherished people.”

One of the key features of the website is its personalized insurance experience, which takes customers through a short journey to help them identify the best insurance plan for their needs.

Whether customers are looking for coverage for their home, car, business, or loved ones, the website provides tailored recommendations to ensure they find the right insurance solution quickly and easily.

With its user-friendly interface and innovative features, the new website from Heirs Insurance Group sets a new standard for the insurance industry, making it easier than ever for customers to protect what matters most to them.

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Banking Sector

Safaricom, Access Holdings Forge Partnership to Revolutionize Remittance Corridor in Africa

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Access bank

Safaricom, the leading telecommunications company in Kenya, has entered into a strategic partnership with Access Holdings, spearheaded by Aigboje Aig-Imoukhuede.

The collaboration aims to revolutionize the remittance corridor between East and West Africa, marking a significant step towards enhancing financial inclusion and empowering millions of individuals across the continent.

The partnership comes on the heels of Access Holdings’ recent acquisition of the National Bank of Kenya Limited, signaling the company’s ambitious expansion into the East African market.

Leveraging Safaricom’s extensive network and expertise in mobile money through M-Pesa, which currently dominates the mobile money market in Kenya, the alliance seeks to create seamless and efficient channels for remittance transactions.

Aigboje Aig-Imoukhuede, the driving force behind Access Holdings, expressed enthusiasm about the collaboration, highlighting its potential to transcend traditional boundaries and foster greater economic connectivity between East and West Africa.

He highlighted the fusion of collective expertise and resources between the two entities, underlining their shared commitment to driving financial inclusion and empowerment across the continent.

The partnership holds promise for addressing the challenges faced by millions of Africans in accessing affordable and reliable remittance services.

By connecting more than 60 million customers and 5 million businesses across eight countries, the collaboration aims to facilitate over $1 billion in daily transaction value, significantly boosting the flow of remittances within and outside Africa.

With the first phase of the collaboration focusing on key markets such as Nigeria, Kenya, Ghana, and Tanzania, stakeholders anticipate a transformative impact on the remittance landscape, paving the way for greater intracontinental trade and economic integration in line with the objectives of initiatives like the African Continental Free Trade Area (AfCFTA).

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Banking Sector

EFCC Urged to Repatriate Recoveries to NDIC for Depositors’ Relief

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The Nigeria Deposit Insurance Corporation (NDIC) has made a fervent plea to the Economic and Financial Crimes Commission (EFCC) to expedite the repatriation of recovered funds to its coffers to facilitate the timely reimbursement of depositors affected by bank failures.

During a recent meeting between the Managing Director of NDIC, Bello Hassan, and the Executive Chairman of the EFCC, Ola Olukoyede, at the NDIC headquarters in Abuja, Hassan stressed the importance of enhanced collaboration between the two agencies in recovering depositors’ funds lost due to bank failures.

Hassan emphasized that the return of recoveries made by the EFCC on behalf of the NDIC would significantly contribute to the prompt reimbursement of affected depositors.

He commended the EFCC for its unwavering efforts in combating corruption and financial crimes, highlighting its crucial role as a key member of the Taskforce on Implementation of the Failed Banks Act chaired by the NDIC.

The NDIC boss also highlighted the existing partnership between the two organizations, which led to the establishment of the NDIC Help Desk at the EFCC in 2022.

He disclosed that several high-profile cases referred to the EFCC were currently under investigation.

In response, Olukoyede reiterated the EFCC’s commitment to collaborating closely with the NDIC to combat financial crimes and safeguard the integrity of the Nigerian banking sector.

He pledged to intensify efforts to repatriate recovered funds promptly, acknowledging the interconnectedness between criminal activities and bank failures.

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