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Stamp Duty Controversy: CBN recovers over N35bn as probe begins

The @cenbank revealed it has recovered over N35 billion from Commercial Banks, being part of the reported N20 trillion unremitted stand duty. CBN’s Mallam Abubakar Kure disclosed this on Wednesday in Abuja

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The Central Bank of Nigeria (CBN) revealed it has recovered over N35 billion from commercial banks, being part of the reported N20 trillion stamp duty funds that were unremitted.

The CBN Acting Director of Banking Services, Mallam Abubakar Kure, disclosed this on Wednesday in Abuja while he appeared before the House of Representatives Adhoc committee probing the non-remittances of N20trn stamp duty incomes from 2010 to date.

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According to the CBN Acting Director, the apex bank has recovered the sum of N35.2bn between February 2016 and now. However, the sum has not been remitted to the Federation Account on behalf of the Nigerian Postal Service (NIPOST).

While reacting to the reason for non-remittance of the recovered stamp duty funds, Kure explained that the CBN has not been authorised to move funds to customers accounts.

“we Submitted bank statements from 2016 to date stating all the collection of stamp duties dated May 13th. Also submitted were .details of bank-by-bank submissions.

“Bank duties collected have not been remitted to the federation account as we haven’t received instructions from the account owners. we’re not authorised to move funds to customers accounts if there’s no instruction to that effect.”

Pending Litigation – In the meantime, Kure explained that the CBN is aware of litigation pending at the supreme court. Specifically, he noted that the litigation in court prevents the movement of the recovered funds into the Federation Account, stressing that after pending court litigation, funds will be remitted on the instruction of Nigerian Postal Service (NIPOST).

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Meanwhile, the honorable members further asked Kure to explain why the CBN continues to recover the Stamp duties when it is not remitting yet to the Federation Account. He then explained that the apex bank is guided by the court ruling which specified that funds recovered should be returned to those whose accounts were debited. He further stated that the CBN in collaboration with relevant agencies and the deposit money banks will effect the directives.

The Back Story – In 2017, the Nigeria Senate mandated its committee on finance and banking, insurance, and other financial institutions to investigate alleged N7 trillion non-remittance of stamp duty revenue in the last five years.

The committee was constituted following the report that the agencies refused to disclose details of the stamp duty revenue whose status has been shrouded in secrecy over the years.

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Remitted funds – Meanwhile, yesterday, asked Kure to explain why no record of stamp duty collection was recorded in January 2016. The CBN representative explained that there was a circular in 2016 asking banks to remit all charges collected from stamp duties and that commercial banks have complied as they wouldn’t have violated such a directive that would attract stiff penalties to them.

Reacting on the CBN claim, Mr. Oladele Agboola, Company Secretary and legal adviser to the Nigerian InterBank Settlement Systems plc (NIBSS) disclosed;

“before 2016, no bank collected stamp duties from their customers because there was no legal basis to do so, neither was their instructions for any bank to charge stamp duty on any transfer made electronically.”

Similarly, the NIBSS Secretary stated that the organisation was engaged with the mandate of assisting with the weekly collation of stamp duty charges deducted from account holders in commercial banks from March 2017. However, contrary to the figured recovered by the CBN, NIBSS claimed to have recovered N35bn.

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“From March, 2017 to May 2019, NIBSS has collected the sum of N35bn from commercial banks and remitted to CBN on a weekly basis.”

Upon noticing the disparity between figures provided by the CBN and NIBSS, Agboola stressed that the gap from February 2016 to March 2017 must have accounted for the differences in figures presented by the two sides.

Upshots – Controversies still surround the huge unremitted stamp duty fund which has been revealed to be around N20 trillion. Earlier, Nairametrics revealed that the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has perfected plans to embark on a nationwide probe of banks over the non-remittance of stamp duties which is now in the tune of N100 billion.

While the probe is expected to bite hard on defaulting banks, cutting sharp practices in the banking sector will aid in tightening leakages in order to recover Stamp Duty revenue which will reduce the budget deficit financing in Nigeria.

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Patricia

Samuel is an Analyst with over 5 years experience. Connect with him via his twitter handle

3 Comments

3 Comments

  1. Emmanuel

    May 17, 2019 at 8:27 am

    This issue of stamp duty is very frustrating to bank customers. Some banks don’t even pay interest on savings anymore, all they do is charge stamp duty on every transaction carried out with them. Like in my case, when interest is paid on my savings, my available balance gets reduced instead of increasing. Funny indeed. I deposit, stamp duty, I transfer stamp duty, somebody transfers money to my account I get stamp dutied, I use ATM I get charged, I buy airtime, I get charged. Well, there’s nothing I can do about it. I have to get used to it

    • Brian

      May 17, 2019 at 5:20 pm

      If you’re using a current account, change to a savings account. If it’s a savings account you’re already using, I advise you change bank.

      Such actions are disincentivising!

  2. Otis

    May 17, 2019 at 2:55 pm

    FCMB bank is still charging me till today for Stamp Duty
    I wonder Why?

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Corporate Press Releases

From real estate to lifestyle: Purple extends brand to more sectors

Maryland Mall in Lagos will now be known as Purple Maryland.

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In line with strategic repositioning of the company, the management of Purple Group has announced the rebranding of Purple Capital Partners Limited and change of name to Purple.

With this change, its flagship multi-use centre, Maryland Mall in Lagos will now be known as Purple Maryland while the ongoing development in Lekki will be known as Purple Lekki.

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Announcing the changes in Lagos, the Chief Executive Officer, Mr. Olayide Agboola, noted the rebranding and repositioning takes effect from July 1, and would be implemented across all the company’s physical and digital touchpoints.

The decision, he said, was in line with the group’s core belief in continuous innovation and customer satisfaction.

‘’We are refocusing our brand, and extending our reach beyond just real estate development. We see the need to curate affordable lifestyle experiences by leveraging our expertise in real estate development.

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“With MarylandMall, now Purple Maryland and our ongoing development with PurpleLekki, we are integrating retail, arts, entertainment, media and advertisement, family fun, food and drinks, e-commerce and financial services all in one through superior mixed-use centres and services. Our new focus is clear; working with our range and network of partners, we are creating affordable lifestyle experiences for our consumers across all income levels,” the CEO explained.

Agboola further pointed out that all the group’s facilities and ongoing development were also rebranded and would be addressed with the Purple prefix (PurpleMaryland, PurpleLekki) while its new services would also bear a touch of the Purple Identity as well. He however added that to keep in touch with the group’s brand heritage; they had kept the same colors and logo symbol.

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Speaking on what the new identity connotes, Agboola stated that the new Purple identity signified growing strength, resilience and elegance, which he noted accurately represents the significant growth and successes it has recorded over the past few years.

He said: “Ours is a story of sheer resilience, best practices and excellent service delivery to our partners and clients across the group. With this brand repositioning, we are re-committing to our core beliefs and ensuring unwavering commitment to our values, to our investors and to our esteemed partners. Our refreshed brand clearly communicates these values. We are also excited to unveil the brand identities for our new services and ongoing development projects”.

According to him, with the new development, PurpleLekki, PurpleNano, Purple.shop and PurplePlay, have all been designed to give customers more value for money. For instance, he explained that  PurpleLekki; the all-new lifestyle centre in Lekki, Lagos, currently under development, will occupy a land size of about 10,000 sqm and a few floors which will be mixed use – retail, entertainment, serviced accommodation, and private offices.

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For PurpleNano, Agboola stated that the premium and standard studio apartments was conceived with the modern professional in mind and available in 2 bedrooms, 3 bedrooms and 1 bedroom variants. “These ‘nanos’ are furnished to fit the peculiarities and taste of the Lekki Market and provide a peaceful, cozy space for occupants and visitors,” he stated.

Speaking of the future, the company also has plans to venture into the e-commerce space with brand ‘purple.shop’. Purlple.shop will work with the base of retail, fashion, food and entertainment partners and service providers in Purple centres. With this, they can reach even more customers through online channels. The e-commerce platform will also provide marketing tools and real-time analytics to optimize growth.

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While pointing out that the group’s identity may have been refreshed, he was quick to add that the company’s focus remained unwavered. “We are creating affordable lifestyle experiences for our consumers through our principal investments in these superior mixed-use centres and services. We also remain thankful and committed to our partners and we will continue to utilize our expertise and experience to deliver alpha returns and provide best service to our customers across the group,” he concluded.

About Purple

Formerly known as Purple Capital Partners, Purple Group is an ecosystem of companies focused on creating best-in-class lifestyle experiences for our consumers through our principal investments in superior mixed-use facilities and services.

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Our lifestyle services spans through real estate, retail, e-commerce, media and advertising, entertainment and family fun, financial services amongst others; all focused on driving our mission to create lifestyle experiences for our consumers with convenience, affordability and finesse. Our lifestyle portfolio of developments include purplemaryland, purplelekki, purplenano.

 

Patricia
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Companies

Lafarge Africa Plc. announces its board meeting and closed period for Q2 2020 

The notification which was duly signed by General Counsel & Company Secretary.

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Lafarge Africa

Lafarge Africa Plc. notified the Nigerian Stock Exchange and the investing public that he closed period will commence on Wednesday, 8th July 2020 until the unaudited financial statement for the second quarter ended 30th June 2020, is released to the Nigerian Stock Exchange. 

In a disclosure on the Nigerian Stock Exchange, it wrote: “We hereby notify the Nigerian Stock Exchange and the investing public that a meeting of the Board of Directors of Lafarge Africa Plc has been scheduled to hold on Thursday, 23rd July 2020 to consider the second quarter financial results of the Company for the quarter ended 30th June 2020.”  

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The notification which was duly signed by General Counsel & Company Secretary, Mrs. Adewunmi Alode explained further stating that “Accordingly, no Director, employee, persons discharging managerial responsibility and Advisers of the Company and their connected persons may directly or indirectly deal in the shares of the Company in any manner during the closed period.” 

Over the past few months, it made a few board changes with the retirement of two of its Non-Executive Directors, as well as the appointment of three new DirectorsIt had also spun off its South African subsidiary, Lafarge South Africa Holdings (LSAH), last year. 

Lafarge Africa’s Q1 2020 revenue was up 9.8% year-on-year to N63.7 billion, driven by higher Cement Sales (a figure up 11% year-on-year to N62.3 billion) which offset the weakness in Aggregate and Concrete (down 21% y/y to N1.4bn). Its EBITDA grew by 2.4% year-on-year to N19.3 billion as well. As at Tuesday the 7th of July, the share price of the company was N10.00 

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Patricia
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Companies

AXA Mansard Insurance Plc gives notice of Annual General Meeting 

The AGM will be live-streamed to enable shareholders and stakeholders participate.

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Insurance firm, AXA Mansard Insurance Plc., has given notice of its board of its Annual General Meeting (AGM) scheduled for Wednesday, July 29, 2020, at 10:00 a.m.  

The announcement which was disclosed by Nigerian Stock Exchange (NSE) in a corporate disclosure on July 7th, 2020 and signed by Company Secretary, Omowunmi Mabel Adewusi read, “Notice is hereby given that the twenty-eighth annual general meeting of AXA Mansard Insurance Plc. will hold at the Oriental Hotel, no. 3, Lekki Road, Victoria Island, Lagos on Wednesday, July 29, 2020, at 10:00 a.m.” 

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As noted, the purpose of the AGM is to transact the following business: 

  1. To receive the Audited Financial Statements for the year ended December 31, 2019, and the Reports of the Directors, Auditors and Statutory Audit Committee thereon 
  2. To authorise Directors to fix the remuneration of the Auditors 
  3. To elect Directors and 
  4. To elect members of the Statutory Audit Committee.  

In order to ensure that all relevant stakeholders can be a part of the AGM, the company will also be streaming the AGM live. It noted that “This will enable shareholders and other stakeholders who will not be attending physically to follow the proceedings.” 

The link for the live streaming of the Meeting will be made available on the Company’s website at www.axamansard.com. 

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Recall that a few months ago, in March, the company’s Board of Directors announced the appointment of John Dickson as the company’s new Non-Executive Director. A month earlier, it also disclosed its plan to sell its pension management subsidiary (AXA Mansard Pensions Ltd) and some undisclosed real estate investments. 

Its unaudited financials for the period Q1 2020 reveal a growth across revenue and profit lines. Gross written premium grew by 21% from N17.4 billion earned in Q1 2019 to N21 billion in Q1 2020. Profit for the year for the group grew by a commendable 120% from N890 million in Q1 2019 to N1.9 billion in Q1 2020. 

As at Tuesday, the 7th of July when markets closed, the share price of the company was N1.59. The company’s EPS stood at 0.33 while its price to book ratio stood at 0.6082. 

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Patricia
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