Commercial banks in the country have commenced the deduction of 0.375% on all loans disbursed by them.
This follows a directive by the federal government for the deduction and remittance of same.
Some of the banks, in email messages to their customers, explained that the deduction is to be made on the principal loan amount.
One of the banks wrote: “Dear Valued Customer, We write to inform you that the Federal Government of Nigeria has directed that all banks remit stamp duty on all loans.
“In line with this directive, 0.375% on every principal loan amount disbursed will be debited and remitted to the Federal Government of Nigeria.
“However, all existing approved loans remain unchanged and are to be fully repaid in line with the terms and conditions. We are committed to offering you exceptional service every step of the way.”
The federal government has recently expanded the scope of transactions eligible for stamp duty charges from regular bank transfers to include foreign transactions and now loans.
Earlier in January, banks were directed to deduct stamp duty on old foreign transactions between January 2021 to December 2023 by January 31, 2024. Prior to this, the electronic money transfer levy was only applicable to accounts receiving electronic deposits of N10,000 and above or its equivalent.
According to the Federal Inland Revenue Service (FIRS), Stamp Duty is an indirect tax in Nigeria governed by the Stamp Duties Act (SDA), CAP S8 LFN 2004 (as amended).
Last year, a former Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, disclosed that the total revenue collected as stamp duty on behalf of the Federal Government in 6 years, between 2016 and 2022, stood at N370.686 billion.
