Commercial banks across Nigeria have sent messages to customers informing them of the implementation of new stamp duty deductions.

These deductions are applicable to specific transactions that necessitate duty payments, including contracts and legal mortgages and bonds.

Mortgage-backed loans represent offerings from financial institutions to individuals seeking to purchase a home, allowing them to repay gradually with interest.

On the other hand, bonds are debt instruments issued by various entities like governments, municipalities, or corporations to procure funds.

FIRS instruct banks

Legit.ng had earlier reported that the Federal Inland Revenue Service (FIRS) has instructed banks to begin the deduction on customers account and remit to government accounts.

The move comes as part of federal government efforts to bolster revenue generation and ensure compliance with financial regulations.

Banks notify customers

In adherence to the FIRS directive, commercial banks in Nigeria have initiated the process of notifying customers on the charges.

In a notice from Access Bank to its customers it said that a 0.375% charge would be applied to loans backed by legal mortgage, shares, debentures, or bonds.

The message reads:

“In compliance with this directive, we have taken measures to streamline the process to make transactions more convenient for you.

“To this end, a stamp duty charge of 0.375 per cent will be applied to loans backed by legal mortgage, shares, debentures, or bonds. The charge will be applied on the value of the Legal Mortgage, Shares, Debentures or Bonds and remitted to the Federal Inland Revenue Services.

“However, all previously approved loans will remain unchanged and should be repaid in full as per the agreed terms and conditions,” the bank notified its customers."