Despite COVID-19 Negative Impacts, CBN Continues to Charge Stamp Duty

• Despite COVID-19 Negative Impacts, CBN Continues to Charge Stamp Duty

The Central Bank of Nigeria has continued to compound the burden of  the Nigerian people despite the negative impacts of COVID-19 on earnings.

It should be recalled that in an effort to enhance internal revenue generation and boost revenue to GDP from 6 percent to 15 percent, the apex bank had imposed N50 stamp duty on N10,000 and above transactions.

This was prior to COVID-19 outbreak that eroded earnings and business activities across all sectors. However, despite calls to support families, individuals and businesses affected by the deadly virus, the apex continues to impose and debt stamp duty on bank accounts of Nigerians.

In a recent email forwarded to customers by the United Bank for Africa, the lender said it has commenced deduction of stamp duty since  1st of February in line with central bank directive.

In the email, the deposit money bank stated that “On February 1st 2020, the Federal Government of Nigeria (FGN) released a policy directing all banks to apply a stamp duty charge of N50 to all inflows of N10,000 and above.”

“You may have noticed this charge on a few of your transactions from April 1st 2020. The charges for February and March 2020 would be deducted from your account on May 9th.”

In spite of the current hardship, reduction in salaries and in some cases nothing at all, the apex bank has refused to revise several revenue generating policies in line with current economic realities like it did with the Naira devaluation.

This may not be unconnected with the $3.4 billion loan secured from the International Momentary Fund. Investors King had reported that part of the agreements reached with Federal Government was to increase revenue generation by increasing electricity tariffs and VAT.

It is sad that the same government that announced it would stimulate the economy and support families and businesses with more than N3.4 trillion, is the same government imposing demurrage on goods abandoned in warehouse due lockdown, charging stamp duty and planning to raise tariffs.