The Federal Government has directed commercial banks in the country to henceforth deduct and remit 0.375% of all loans disbursed by them.
The deduction is to be made on the principal loan amount, according to a message sent to customers by banks, according to nairametrics.
This follows as the government stretches the net on transactions covered by the stamp duty charges from regular bank transfers to foreign transactions and now loans.
Recall that in January this year, banks were also required to deduct stamp duty on old foreign transactions between January 2021 and December 2023 by 31 January 2024. Previously, accounts that received electronically deposited amounts of more than N10,000 and equivalent were subject to the EMT levy.
One of the banks wrote in a message to their customers on Wednesday, informing them that they would be deducted:
“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% of 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.”
According to the Federal Inland Revenue Service, Stamp Duty is an indirect tax in Nigeria governed by the Stamp Duties Act (SDA), CAP S8 LFN 2004 (as amended).
It is a tax charged for a stamp or seal applied on a written or electronic document which if executed, makes it a legal document and will be admissible in any court of law.
