The Central Bank of Nigeria has instructed commercial banks to start charging N50 for deposits of N1000 and above. According to the directive from CBN, banks will now charge N50 for every transaction of N1,000 and above transferred into an account either electronically or using a bank teller. The charge only applies to the account of the receiver. This however, excludes transactions on savings accounts. The instructions does not affect transfers between self accounts
This was contained in a circular sent to commercial banks on Tuesday. This charge is backed by Nigeria’s stamp duties law on financial transactions across commercial banks.
To explain better, if you receive N1,000 or N10m or N5,000 or any amount provided or it is more than N1,000 banks will deduct N50 only.
Analyst believe this instruction is part of the efforts of the new government at improving the tax revenue of the government following the drop in oil revenue. The government has also made it clear that it will be seeking to rely more on taxes to drive its 2016 budget as well as future government revenue drive. Nigeria with a GDP of about N90trillion currently earns less than 8% of that in non oil taxes.
For most Nigerians this is another another added cost to your banking transactions. Banks already charge a token amount for online transfers and also charge fees for deposits over a certain amount. Individual depositors could also now start to rely more on savings accounts for their transactions instead of current accounts in a bid to avoid this charge.
The tax appears not to affect transfers outside Nigeria to a foreign account.
This new tax is overdue, by 30yrs,when gen Babangida took over,he start by increasing the supply of money through deficit annual budget,so this process improvishes millions of Nigeria,the riches stays at the top,the poor stays the breadline.
If Nigeria wants Nigerians to be rich,there should be a mass programme for Nigeria to realizes their potential.nigeria as an entity is a political unit,so Govt should make a political decision, SO NIGERIANS WILL SEE THE BENEFIT OF BEING BIG AND UNITED AND THEY WILL BELIEVE THAT NIGERIA IS THE BEST COUNTRY IN OUR WORLD,EVERY THING IS POLITICAL.
I am worried about inflation,this incoming budget contains some deficit,to cover this deficit,or put the budget in surplus is to increases the rates of taxes, and broaden the scope of taxes I.E,THIS SUPPLY OF MONEY,AT THE TOP,YOU TAXES THE RICHES,THE POOR WILL SEE THEY HAVE A SHARE IN THEIR COUNTRY,THEY WILL NOT ENVY THE RICHES,THEY WILL KNOW THE RICHES EARNED THEIR WEALTH BY LEGITIMATE MEANS.THE CA– USES OF REVOLUTION IN ALL HISTORY IS (1)UNEQUALITIES OF OPPORTUNITIES (2) INJUSTICES (3)OPPRESSION ( 4) POVERTY IN THE LAND ( 5) TYRANT RULERS
This is origin of organized religion, and this communism or socialism.or nationalism and this why hitler got into power.This stamp duty is not going far,the riches should be taxed more,to CREATE HARMONY IN NIGERIALAND this agitation for Biafra will die quickly,and book haram wil also die too,THE RATES OF TAXES SHOULD BE INCREASED IN DOUBLE RATE