Banks News In Nigeria: Important News To Customers of Access, Zenith, UBA, and Others Bank

Banks News In Nigeria: Important News To Customers of Access, Zenith, UBA, and Others Bank

FG directs Access, Zenith, UBA, and others to begin important deductions on loans, and banks write customers.

Banks News In Nigeria: The federal government has urged commercial banks to begin stamp duty deductions on loans made by their customers. According to the rule, deposit money banks must deduct 0.375% from all loans made by their customers.

The move follows earlier deductions by banks on foreign currency transactions and the electronic money transfer fee.

The Nigerian government requires commercial banks to withhold and remit 0.375% of loan disbursements to consumers. According to the directive, the deduction is to be made on the principal loan amount.

Banks send messages to customers

The development is detailed in a notice delivered to bank customers by many financial organizations. The Nigerian government is looking to broaden the scope of transactions covered by stamp duty levies beyond typical bank clients to include overseas transactions and, most recently, loans.

In January, banks informed consumers of the Nigerian government’s instruction to withhold stamp duty on past foreign currency transactions from January 2021 to December 2023.

FG directs deductions on FX transactions

The Nigerian government levies an Electronic Money Transfer Levy (EMT) on bank accounts receiving N10,000 or more. According to reports, banks notified clients of the new development on March 27, 2024.

According to the Federal Inland Revenue Service (FIRS), stamp duty is an indirect tax in Nigeria that is governed by the Stamp Duties Act (SDA), CAP S8, LFN 2004.

What FIRS says about Stamp Duty

Stamp Duty, according to the Federal Inland Revenue Service (FIRS), is an indirect tax in Nigeria administered by the Stamp Duties Act (SDA), CAP S8 LFN 2004 (as amended).

According to the Act, there is a tax on a stamp or seal given to a written or electronic document that, when performed, becomes a legal document and is admissible in court.

The Central Bank of Nigeria (CBN) hiked interest rates by 200 basis points to 24.75% to combat inflation. The current development is the CBN’s response to the country’s rising inflation, which reached 31.75% in February 2024.

Access, Zenith, and other banks set to make changes to savings accounts

Commercial banks in Nigeria plan to make significant adjustments to consumers’ savings accounts to protect them from inflationary pressures, as previously reported. In February 2024, Nigeria’s inflation rate reached an all-time high of 31.70%, ranking among the highest in Africa.

Analysts believe the Central Bank of Nigeria (CBN) will take vital steps to protect customers’ funds from inflation by hiking the Monetary Policy Rate (MPR), the second since the CBN’s boss, Olayemi Cardoso, took office.


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