CBN New Stamp Duty Policy Goes Live on InfoWARE Global ERP

The Federal Government through the Central Bank of Nigeria (CBN), recently imposed stamp duty of N50 on bank customers for money received into their accounts.  Consequently, bank customers will henceforth pay N50 stamp duty for money received into their accounts via electronic transfer, cash and cheques.

To give full vent to this measure, the Central Bank of Nigeria (CBN) has dedicated an account known as the CBN NIPOST Stamp Duty Account into which all collections accruing from the new duty would be paid. It has been estimated that the total cash lodgements into various bank accounts, transfers of cash arising from Point of Sale, Automated Teller Machines, mobile banking transactions etc. may hit fifty (50) million in volume per day and probably net the Federal Government about N2.5 billion daily.

While there is no or little issue about compliance from Deposit Money Banks and other financial institutions on the new N50 charge in acknowledgement of services rendered in respect of teller deposits and electronic transfers, there is however one major complication as to how these deductions directly impact in-house customers’ account most especially for Brokerage houses, Investment Banks among others.

The InfoWARE Advantage

At InfoWARE, we’ve successfully completed the implementation of the Stamp Duty Policy across our platform to facilitate a robust and automated execution of the new N50 charge on clients’ portfolio. Specifically, this means that an automatic N50 stamp duty charge is debited per client’s deposit transaction above N1000 which is seamlessly reconciled across their respective accounts. This contrasts sharply with the idea of manually raising multiple GL journal entries/books and ultimately saves more productive time while dealing with very large volume of transactions.

According to DGM, InfoWARE Limited, Oluwafunto Olasemo, “Clearly, we’ve taken a proactive step in rolling out a simplified and flexible approach that would enable our clients eventually determine whether to transfer the N50 stamp duty charge on their customers or not, since appropriate deductions would have been effected on their receiving account on Deposit Money Banks platform”.

To learn about how our team can help you with a swift and comfortable deployment process, please contact your InfoWARE Account Officer or solutions@infowarelimited.com.