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Financial Services

Access Bank tells customers it’s time to pay accrued stamp duty charges

The charges accrued between February 1st and April 30th, due to ommissions by the tier-1 bank.

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Access Bank tells customers to pay N50Stamp Duty

Access Bank Plc said it recently discovered a mistake in its operations records, whereby stamp duty charges on applicable transactions were not passed on to customers. The omissions occurred between February 1st, 2020, and April 30th, 2020.

The tier-1 bank said it is deeply apologetic for this error. However, all concerned customers are to prepare to pay off the accrued charges.

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According to an email that was sent by Access Bank to its customers over the weekend, the accrued N50 stamp duty charge will be debited from applicable customers’ accounts for remittance to the Central Bank of Nigeria, CBN. Concerned customers were, therefore, advised to keep enough money in their bank accounts in order to accommodate the charge.

“We recently discovered that the charges on applicable transactions carried out between February 1, 2020, and April 30, 2020, were inadvertently not passed on your account. We sincerely apologise for this. 

“However, in compliance with the CBN mandate, we will be required to process the accumulated charges for the said period on your account for remittance to the Central Bank of Nigeria. We request that you fund your account to accommodate this charge,” part of the email from the bank said.

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As the email by Access Bank further explained, the Central Bank of Nigeria requires that a stamp duty charge of N50 be imposed on savings and current account holders for transactions (both deposits and electronic transfers) exceeding N10, 000.

As Nairametrics earlier reported, the N50 stamp duty charge was reviewed in the Federal Government’s latest finance bill which took effect earlier this year. The revision is such that instead of customers would be required to pay the N50 stamp duty only if their deposits or transfers exceed N10,000. This is against an earlier (controversial) practice of imposing a stamp duty of N50 for every deposit/transfer exceeding only N1,000.

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Patricia

Emmanuel covers the financial services sector for Nairametrics. Do you have a scoop for him? Well then, contact him via his email- [email protected]

8 Comments

8 Comments

  1. Paul-Umar Ameh

    June 22, 2020 at 9:56 pm

    Access Bank Plc is just trying to pass on the incompetence of the bank to the customers. Was it an oversight as they claim or gross incompetence? It is time we get a lawyer to sue if they as much as touch a single kobo of customers deposits.

  2. Inemesit Akpan

    June 23, 2020 at 6:42 am

    Their excesses is too much. I’m usually charged #100 for stamp duty, imagine. I think it’s high time to move my funds to another genuine bank.

    • Anonymous

      June 23, 2020 at 11:04 am

      We will soon migrate from Access Bank all, Access is not the only bank in Nigeria. They cheat us, steal and pilfer our funds that are in their care without notification or explanation. We are all tired of their excesses and it’s time to move our funds to other banks.

  3. Esther Stephen

    June 23, 2020 at 11:06 am

    We will soon migrate from Access Bank all, Access is not the only bank in Nigeria. They cheat us, steal and pilfer our funds that are in their care without notification or explanation. We are all tired of their excesses and it’s time to move our funds to other banks.

    • Anonymous

      June 23, 2020 at 2:34 pm

      I have replied them not to touch kobo in my account. I am tired of this rubbish in Nigeria.

    • Henrietta otoabasi-akpan

      June 23, 2020 at 3:12 pm

      Thank you all for the very like nature comments. Truly Access bank is not a good place to bank at all. Unfortunately l did not open account with them- l came in with Diamond bank. They sent me the mail of such backlog of bank charges. I have replied them accordingly. I did not take any loan from the bank. So they can now just write me to say l should fund my account for their incompetence. The other day on Facebook, they won the award for the most incompetent bank in Nigeria. I am waiting on their reply. Customers rights should be protected.

  4. Jacob

    June 23, 2020 at 7:10 pm

    And its time for we customers to stop saving money With access bank, i will start saving my money with other banks

  5. Jenny Oke

    June 23, 2020 at 8:45 pm

    It’s a shame. Access bank charges stamp duty on received and sent funds.. so pathetic.. even for a 1000 naira transfer, your account is charged 50 naira stamp duty.

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Financial Services

CBN expands scope of regional banks in Nigeria, gives compliance timeframe

The aim of this directive is to expand the reach of the regional banks across the country, the CBN said.

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CBN expands scope of regional banks in Nigeria, gives compliance timeframe

The Central Bank of Nigeria (CBN) has expanded the scope of regional banks in the country, by requiring them to open branches in at least one additional geopolitical zone outside of the existing geopolitical zones where their operating licenses cover.

A circular that was issued earlier this week by the apex bank said this new directive is in accordance with “section 8 (g) of the CBN Scope, Conditions & Minimum Standards for Commercial Banks Regulations no [1] 2010 as revised on September 4, 2019.” 

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The new directive took effect on Friday, June 26, 2020. In other words, all the regional banks are expected to have become aware of this development since then. They now have a timeframe of six months to establish their presence in the geopolitical zones outside of where they currently operate.

READ ALSO: Nigerian Banks expected to write off 12% of its loans in 2020 

It should be noted that prior to this time, regional banks in the country typically operated in at least two geopolitical zones of the federation. However, in line with the new expansion, the CBN shall now prescribe an additional geopolitical zone for each of these regional banks, thereby making the coverage area three geopolitical zones per regional bank.

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Meanwhile, the CBN said the aim of this directive is to expand the reach of the regional banks across the country, whilst ultimately promoting financial inclusion. Note also that the new directive affects all regional banks, both the ones engaged in commercial banking and non-interest banking. Some part of the circular said:

“Effective the date of this circular, all banks with regional authorisation shall be required to operate from one additional geopolitical zone as may be prescribed for each institution by the CBN, without prejudice to the existing requirement of the minimum of two (2) geopolitical zones of the federation. The essence is to promote spread and balance of the regional banks across the country.

“The compliance timeline to establish operational footprint at the advised zone shall not exceed six (6) months from the issuance of the regulatory advice to each regional bank by the CBN.”

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Banks’ stakeholders express 4 main concerns bothering the sector right now

Banks are more concerned about the arbitrary nature and lack of understanding of the CRR debits.

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Banks' stakeholders express 4 main concerns bothering the sector right now, CBN, MARKET UPDATE: CBN’s historic agriculture lending; Is it yielding the desired results? 

Stakeholders in the Nigerian banking sector have raised concerns over four main issues that are threatening their investments at the moment.

These concerns range from the perceived “unorthodox monetary policy” moves of the apex bank, to FX liquidity issues, and of course the negative impacts of the COVID-19 pandemic.

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These concerns were raised by the representative of some of the country’s top banks (Zenith Bank Plc, FBN Holdings Plc, United Bank for Africa Plc, Guaranty Trust Bank Plc, and Stanbic IBTC Holdings Plc) who recently attended Standard Chartered Bank’s 2020 Africa Investor’s Conference.

READ MORE: Bank Hold-Cos are expected to fare better in new era of Nigerian banking

Focus on the issues raised

According to an executive summary of the conference which was made available to Nairametrics, banks’ stakeholders are especially worried about the following:

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  • The negative impacts of CBN’s constant CRR debits.
  • The issue of naira’s liquidity management.
  • They are also worried about FX liquidity (or the lack thereof), as well as the exchange rate unification at CBN’s different windows. When will the CBN resume dollar sales to foreign portfolio investors in the I&E window?
  • Lastly, banks’ stakeholders are worried about COVID-19 and its impacts on earnings outlook, loan restructuring, and asset quality.

Part of the document containing the executive summary of the conference said:

“Banks are more concerned about the arbitrary nature and lack of understanding of the CRR debits as it makes it difficult for them to plan. Most are increasing steps to reduce balances with the CBN to limit debits.  According to the CBN, CRR balances with the CBN currently stand at N10tn, 22% of sector assets and 50% of sector deposits. This is negative for NIMs, but funding costs have also declined, dampening the impact. Most of the banks have presented loans to the CBN for restructuring but are still engaging with clients. According to the CBN, loans presented by the sector for restructuring account for 32.9% of total loans, implying an overall weakness in sector asset quality, which we will likely not see in asset quality deterioration by FY20e given the regulatory forbearance.

“Sector NPL ratio currently stands at 6.6% vs. 11% in April 2019. Banks continue to maintain their position of following strict credit processes to drive credit growth, and not grow loans aggressively due to pressure from the loan-to-deposit ratio (LDR) minimum lending policy of the regulator.

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“The improvement in oil prices has also reduced the concerns of asset quality deterioration in oil and gas exposure. Obligors in the sector have a breakeven cost price at the USD30/bbl level. Some banks expect further devaluation in the currency at the official window, given the depressed FX revenue outlook from
lower oil prices, but acknowledge the backward integration drive of government to improve corporates’ sourcing of raw materials locally to reduce pressure on FX due to imports.”

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Recall that there have been different reports and forecasts about the recent negative pressures on Nigerian banks and how their earnings/profitability might take a hit. And this is probably the first time these banks are acknowledging and speaking up about these changes. It is unclear, at this point, what the CBN might do to remedy some of the concerns raised.

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In the meantime, you may download the full report containing the key takeaways from the conference by clicking here.

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Financial Services

Adesina Probe: US Treasury Secretary praises AFDB’s decision on independent review

The AFDB said it supported an internal investigation that cleared Adesina.

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Adesina Probe: US Treasury Secretary praises AFDB’s decision on independent review, Growth must be seen in citizens' lives, AFDB President to African leaders, AFDB launches $3 billion “Fight COVID-19” social bond, Adesina Probe: US Treasury Secretary praises AFDB’s decision on independent review

The US Treasury Secretary, Steven Mnuchin on Thursday praised the African Development Bank’s decision for an independent probe of the bank’s president, Akinwunmi Adesina.

Mnuchin, while stating that institutions must be held to standards of transparency, commended the AfDB’s decision to pursue an independent review.

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“International intuitions must adhere to the highest standards of governance and transparency, and the decision to pursue an independent review demonstrates the strength of the African Development Bank,”

“Undertaking an independent review is fully consistent with a presumption of innocence,” Mnuchin said.

Mr. Adesina was accused by a whistleblower of abusing his office with allegations of nepotism through handing contracts and appointments, accusations he has denied.

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The AFDB said it supported an internal investigation that cleared Adesina. However, the US government demanded an independent review.

READ MORE: AfDB bows to pressure from U.S, orders an independent probe of Akinwumi Adesina

The panel will be chaired by former Irish president, Mary Robinson, and includes Gambian Chief Justice, Hassan Jallow, and Leonard McCarthy, former World Bank Vice president for Integrity and also an ex-South African government official.

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They will review an ethics committee report that found zero evidence of wrongdoings on Adesina and the review is expected to be completed in 2–4 weeks.

The United State is the bank’s second-largest shareholder and called for an independent probe, rejecting the bank’s internal review.

President Buhari has assured Adesina of Nigeria and Africa’s backing from the American “onslaught”.

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The shareholders of the bank also include all 54 African Nations and 27 others from the rest of the world and also serve as Africa’s largest multilateral bank.

 

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