N50 stamp duty: Nigerians opt for cash transactions

• Merchants, agents express frustration

More Nigerians now avoid ePayment platform in preference for cash deals due to the implementation of a N50 additional charge by merchants, as imposed by the Central Bank of Nigeria (CBN), in collaboration with the Nigeria Inter- Bank Settlement System (NIBSS).

The CBN described the new service levy as Stamp Duty Charge.

Customers, who previously cheered CBN’s decision to infuse the policy, saying it would eliminate the risk of carrying cash and reduce the cost of printing Naira notes, have criticised the move to collect stamp duty charges on PoS transactions.

It must also be mentioned that other payment channels, including the automated teller machines (ATMs), Instant Transfers, Online Banking, and Mobile Banking are still seriously challenged.

Already, financial transactions are replete with all manners of excess charges by the banks and merchants, even when services are not delivered as and when due.

According to the CBN 2017 to 2019 Banking Guide, Nigerians, especially bank customers are made to face several charges by the financial institutions. These include N52.50k monthly card maintenance fee; N65 after third withdrawal in ATM interbank fees. Most times, banks remove the N65 at the first and subsequent withdrawals.

The banks still deduct N4 for SMS alerts, including unsolicited ones for birthday wishes, national and international day celebrations and operational updates. There is also N52 deduction in electronic transfer service. Banks also collect as much as N4,000 as fee for hardware token and N4 for one-time pin (OTP) SMS charge as well as N20 per page of a Statement of Account, among others.

While all these are imposed, then comes the N50 Stamp Duty Charge on Nigerians, who use the PoS terminals.

According to customers, the new N50 charge, which has been implemented by many fuel stations and supermarkets in Lagos, has become a burden and a source of worry to them and merchants as well.

Confirming the drop in PoS transactions, the Managing Director, ITEX Integrated Services, a CBN licensed Super-Agent, Ernest Uduje, while commending the apex bank in the drive to improve financial inclusion in the country, insisted that “this N50 charge is ill-timed.”

According to him, transactions through PoS have dropped within the last few weeks.

Also reacting, President, Association of Telecoms Companies of Nigeria (ATCON), Olusola Teniola, said there should be an urgent stakeholders meeting that will include the CPC, CBN, legislators, civic society, NCC, and Ministry of Communications and Digital Economy. Also to attend the meeting are other wider stakeholders – banks, telecom and service providers, and consumers to address the charges being applied by the banks and ratify the best approach to addressing the infrastructural deficit vis-a-vis the cashless policy objectives.