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SBH Raises Alarm over Non-Remittance N20trillion Deducted as Stamp Duty

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Stamp Duty charges on bank transactions believed to have yielded N20trillion have developed wings and School of Banking Honours (SBH) has raised alarm, according to Nation.

Federal government through the Central Bank of Nigeria (CBN) on January 19 directed that N50 stamp duty be made on all transactions including bank electronic transactions above N1000.

The policy is aimed at boosting the country’s revenue base through non-oil sectors such as taxes and rates.

But the fortune raked in, has pitched the Nigerian Interbank Settlement System (NIBSS) against the School of Banking Honours, an institution registered by the Nigerian Copyright Commission (NCC).

The SBH is spearheading the recovery and remittance of the funds into the Federation Account for sharing by the Federal Government and the 36 states.

Tola Adekoya, SBH’s Project Consultant/Acting Rector, said based on findings from the research arm of SBH, he raised a Demand Notice dated 10th March, 2015, entitled, “Stamp Duty On Electronic Transfer Receipts (2013-2014)” on NIBSS for N7.719trillion as accruing and unremitted revenue to the Federal Government and the states.

He was invited by NIBSS for a discussion, but Adekoya is yet to honour the invitation.

“That invitation is traceable to the Demand Notice of 10th March 2015 that SBH raised on NIBSS as Stamp Duty of N7.7 Trillion due to 36 states and the Federal Government on electronic cash-less transfers which turned over an aggregate N160 Billion daily in just five states of the federation in early 2013, as reported by Central Bank Nigeria (CBN),” Adekoya said.

He told The Nation that from all indications, that figure may have risen close to N20trillion.

He said: ”Further reports revealed that the Stamp Duty revenue has now increased to N20trillion (in local banks), or $53.3 billion (in foreign banks) in four years to 31st March, 2017, and out of which less than one per cent was later swept into a dedicated account with Central Bank of Nigeria, in 2016.”

To him, the matter of diverted public fund should be of serious concern to the public in view of the amount that is in contention and the involvement of agencies and persons allegedly denying governments of such huge revenue collected from the unsuspecting banking public and for appropriate disciplinary action to be taken.

By its Memorandum of Association, the SBH is approved to research into banking operations, and collaborate with banks and government on banking matters. It is empowered to represent government in the suit under its Copyright Certificate No. LW1023 dated 27th September 2012, and titled, “50-Naira Stamp Duty for Government on Electronic Cashless Transfers and Manual Bank Teller Deposits”.

Adekoya said the alleged diversion of public funds should be of serious concern to the public in view of the amounts involved, and the culpability of agencies and persons that have been denying government of such huge revenue collected from unsuspecting banking public, for appropriate disciplinary action.

He said the SBH had approached the CBN in 2012 to partner on the research outcomes that would absorb retrenched and ex-bankers to lead its young emerging bankers on practical part-time banking jobs at a lower career level that is branded as “Shadow-Banking”.

“SBH clarified that Shadow-Banking products would birth other Shadow Industries to absorb the youth in high volume, until vacancies exist in their target career sectors, and for which they could be employed,” Adekoya said, adding that the SBH offer was turned down by the CBN, hence the body later aligned its job creation activities with CBN’s Financial System Strategy (FSS) 2020, but the CBN did not complement this, either, he stated.

Undeterred, Adekoya said, “the Institute then proceeded with a proposal to Nigerian Postal Services (NIPOST) on 20th April 2012 to increase its internal revenue by exploring a narrow window provided for affixing adhesive stamp on banking receipts in Stamp Duties Act 2004, and a Master Services Agreement was signed by both parties on 14th September 2012”.

“The institute then reverted to CBN on its first research work by a letter dated 27th September 2012, titled, “Revenue Collection for Government through Banks”, requesting for approval to engage banks and other financial institutions as collecting agents on the stamping and remittance of Stamp Duty on manual and electronic transfer receipts from N1,000 ( inclusive of all those from below N500,000 that CBN had earlier set as limit for banks) into government coffers,” the report said.

The SBH got approval letters from the CBN. Its two defined roles were firstly to affix N50 stamp as evidence of Stamp Duty Paid on bank receipts, as covered by the Master Services Agreement with NIPOST, and secondly to sweep Stamp Duty Revenue to government, as duly covered by the Copyright Certificate No. LW1023.

Based on the CBN approvals, the institute secured written commitments from three banks to lead other banks on manual stamp duty collection for government.

Adekoya said  since “NIBSS needed no such circular on electronic stamp duty collection for the government, because it runs a central operation, it joined the institute at a press conference on 4th January 2013 to support the government’s revenue project, and was engaged as the ‘official sweeping agent’ for government on 7th January 2013.”

He said the government directed that the only thing we should not charge stamp duty on is naira currency. “We went to Nigeria Interbank Settlement System (NIBSS), which is the firm maintaining the portal for cash-less policy for all the banks. By January 2013, we were ready to run it. Since 1993, NIBSS has not remitted any stamp duty to the government,” Adekoya, said.

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E-Financial

UBA Emerges Best Bank in Support of Real Sector at Banking Awards

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l-r: Adetola Fadeyi, Head Wealth Management, United Capital Plc; Frank Aigbogun, Publisher, Presenting the best bank in support of the real sector trophy to the Usman Isiaka, Head, Strategic Business Unit, Lagos at the BusinessDay Banking Awards, 2017

United Bank for Africa (UBA) Plc, Pan-African banking group, at the weekend was recognised for its extraordinary support of the real sector as it won best bank in the category, ahead of its peers.

 

The award, the organisers noted is in recognition of UBA’s leadership role as in expanding access to funds for the support of the real sector in Nigeria and the rest of Africa where it operates. This feat they further said has brought about unprecedented growth to the sector and by extension, the nation’s economy and that of Africa.

 

Speaking while receiving the prestigious award on behalf of the bank, Mr. Usman Isiaka head Strategic Business Group, expressed appreciation to Businessday for recognising the distinctive role, UBA is playing in Nigeria as well as the African continent in driving financial inclusion coupled with its role in supporting the growth of critical sectors.

 

“The Real sector is pivotal to economic development in Nigeria and all of Africa as it forms the main driving force of any economy and its development.

 

We are pleased with the acknowledgement of our support to the sector. It is worthy to note that our expansion to Africa has not only helped diversify our earnings base, it has provided us with the opportunity to grow economies and partake in the development of Africa. We are grateful to all stakeholders for their support and are stimulated to do even more” he said.

 

Frank Aigbogun Publisher, BusinessDay, Nigeria’s leading business newspaper emphasised that the BusinessDay Banking Awards is the product of a rigorous process by BusinessDay’s Research and Intelligence Unit, designed to feed the editorial and also drive commercial research.

 

“We are motivated by philosophy that, Great institutions and leaders deserve to be recognised so as to boost healthy competition in their sector” that is why we make it a point of duty to celebrate those who make the conscious effort to stand out”, Aigbogun noted.

 

UBA was incorporated in Nigeria as a limited liability company after taking over the assets of the British and French Bank Limited who had been operating in Nigeria since 1949.

 

The United Bank for Africa merged with Standard Trust Bank in 2005 and from a single country operation founded in 1949 in Nigeria – Africa’s largest economy – UBA has become one of the leading providers of banking and other financial services on the African continent. The Bank provides services to over14 million customers globally, through one of the most diverse service channels in sub-Saharan Africa, with over 1,000 branches and customer touch points and robust online and mobile banking platforms.

 

UBA was the first Nigerian bank to make an Initial Public Offering, following its listing on the NSE in1970. It was also the first Nigerian bank to issue Global Depository Receipts.

 

The shares of UBA are publicly traded on the Nigerian Stock Exchange and the Bank has a well-diversified shareholder base, which includes foreign and local institutional investors, as well as individual shareholders.

 

 

 

 

 

 

 

 

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Bank Workers to Down Tools over Mass Sack

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Bank workers under the aegis of Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI) have given notice to the Federal Government of their intention to down tools over the recent sack of some of their members.

 

New Telegraph reported that an official of the association, who disclosed this on condition of anonymity, said the sack of 281 workers by one of the old generation banks, was not justified as it did not align with the Labour Act and Collective Agreement.

 

To drive home its resolve, the source said the association had forwarded a letter to the Federal Government through Dr. Chris Ngige, minister of Labour and Employment, notifying it of the association’s intention to commence the industrial action beginning with the affected bank on October 24, before inviting other banks to participate.

 

According to the letter dated October 11, 2017, and referenced ANS/ORG/GO/YOS/338, which was obtained by our correspondent, the association noted that its decision followed previous notice already given to the bank on September 29, after several letters and meetings to enable both parties to resolve the impasse over the workers’ improper lay off.

 

According to the letter, “We will commence our action by calling on fellow Nigerians to make some withdrawals from their accounts with the bank to enable them to have enough provisions for the period of the industrial dispute. “Also, if there is no quick response, other banks will be called out on sympathy strike by the association.”

 

In the last one year, over 10,000 workers lost their jobs across all the banks in the country. A recent statistics released by National Bureau of Statistics (NBS) revealed that 8,663 workers lost their jobs in the first half of 2017. The data showed that an average of 360 people were sacked every week from January to June 2017.

 

The figures were higher in the first quarter and lower in the second. It was also revealed that while the 8,663 lost their jobs, more contract staff were employed during the period. In the first quarter of 2017, there were 174 executive staff, but the figure reduced to 161 in the second quarter. From 20,483 senior staff in the first quarter, the number dropped to 19,826 in the second quarter.

 

The drop was larger in the junior staff category where the number dropped to 33,783 in the second quarter from 36,202 in the first quarter. However, the number of contract staff increased from 20,237 in the first quarter to 21,837 in the second quarter. The job losses have continued despite warning by the Federal Government in 2016 that banks should desist from sacking their staff.

 

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E-Financial

E-PPAN Rallies Stakeholder to Discuss Big Data Analytics in Combating Payment Fraud

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By peter oluka

The Electronic Payment Providers Association of Nigeria (E-PPAN) has revealed that discussions at the 8th annual payment systems and fraud conference will focus on ‘Leveraging Big Data Analytics in Combating Payment Fraud’.

The Conference holds on the 7th November, 2017 at the Civic Centre, Victoria Island, Lagos-Nigeria.

The Annual Payment System and Fraud Conference is E-PPAN’s veritable rallying ground for the financial industry and its ally to deliberate on payment systems and fraud knowledge in Nigeria.

The event brings together senior level officers of the finTech, telcos, banking, regulatory bodies and public offices to brainstorm on the latest trends in electronic payment innovations and learn winning strategies to manage risks and prevent fraud.

E-PPAN hosts the event this year in partnership with key stakeholders in the industry such as: Central Bank of Nigeria, Police Special Fraud Unit, Nigeria Electronic Fraud Forum (NeFF), Committee of e-Banking Industry Head (CeBIH), Committee of Chief Compliance Officers of Banks In Nigeria (CCCOBIN), Information Security Society of Africa-Nigeria (ISSAN) and the Association of Chief Audit Executives of Bank in Nigeria (ACAEBIN).

A statement from E-PPAN reads: “The objectives for this year’s conference are to: Come up with new and proactive ways of fighting against fraud using Data Analytics; Leverage on the use of Data Analytics in an industry collaborative approach to manage and prevent electronic fraud; Set agenda for government and other key stakeholders on the need to synchronize various silos of data to help manage the Nigerian payment landscape”.

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