STAMP DUTIES: Policy will stunt financial institutions patronage

As the Federal Government continues to put measures in place to prevent Nigeria’s economy from sliding into a recession in 2016, the system faces numerous challenges with a telling effect on the citizens. The Central Bank of Nigeria (CBN) has directed all commercial banks to charge customers N50 on deposits from N1,000 and above,
as part of Nigeria’s stamp duties law on financial transactions. The Nigerian Electricity Regulatory Commission (NERC) wants to increase electricity tariff by next month. The CBN said no more sale of dollars to Bureau De Change (BDC) due to scarcity of forex. The naira is depreciating beyond the control of the apex bank, despite monetary policies formulated to shore up the currency. A financial expert and the National President, Constance Shareholders Association of Nigeria, Mr. Shehu Mikail, speaks on issues in the economy and how government can prevent Nigeria’s economy from going bankrupt. The CBN has directed banks to charge N50 for deposits of N1.000 and above, in line with the Nigeria’s stamp duties law on financial transactions. What is your take on this? I do not like this type of policy because it will discourage people from keeping money in the banks. At present, Nigeria is largely un-banked, especially the rural areas. So, this type of policy will worsen the situation, in particular for traders doing business in the rural areas. It will have negative effect on the cashless monetary policy that is already in place. It is also another way of imposing extra tax on the poor masses. The CBN should jettison this method of taxation and come up with a monetary policy that will strengthen the naira to grow the economy, instead of putting another tax burden on the people.