Stamp Duty: CBN reacts to N89trn controversy

The Central Bank of Nigeria has clarified that the allegation that it was withholding N89 trillion from stamp duty collected was borne out of ignorance.

A member of the House of Representatives Muhammed Kazaure, had alleged that the Apex Bank had failed to account for stamp duty accumulation to the tune of N89 trillion. He also alleged that the Apex Bank also kept another $171 billion in the bank’s private investors’ account, being proceeds of stamp duty collected.

Speaking on Brekete Radio in response to questions by the radio anchor, Apex Bank spokesman Osita Nwasinobi questioned the veracity of the claims.

“We have been hearing these allegations for some time, but its sounds stranger than fiction. They said N89 trillion stamp duty accumulated. But I know that the total assets for Nigerian banks is about N63 trillion. Yet, someone is claiming that fifty kobo accumulated to N89 trillion. I ask, how possible is it, over how many years? Nwanisobi said.

“If there is any committee in charge that has nothing to do with us. The committee can do their work, but their work has nothing to do with the Central Bank of Nigeria (CBN).

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“Our most concern is the N89 trillion, and the total assets of all the banks in Nigeria is not up to that amount,” he added.

Nwasinobi, explained claims that it was keeping $117million from trading on the Import & Export  window was not true noting that the lawmaker does not understand how the I & E window works.

“The I & E window is a platform where people trade in FX, it is not an account, so banks come there to trade, CBN comes in also as an observer, we either buy or sell there because it is a platform. When amounts like these are heard off, I think it’s a little bit of a misunderstanding of what I & E window stands for because it’s a platform for trading and people come in there to buy, sell and stock.”

On the 40:60 ratio, the Apex Bank spokesman said it is in obedience to the law.

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“The 40:60 (N100) ratio stamp duty is obedience to the law, because issues around stamp duty is obedience to the law, this is not about CBN, but obeying what the law says. CBN is the creation of the law, and that is why we say, CBN is an institution with statutory flavor.

“Our responsibility is to keep up with the law. The law states that the act on stamp duty must be obeyed, and that is what it does. We keep records of all transactions. That is why whenever we hear such allegations, we are shocked.