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Deposit money banks (DMBs) in Nigeria have received a directive from the Federal Inland Revenue Service (FIRS) to implement a 0.375% stamp duty charge on mortgage-backed loans.
According to information gathered by MarketForces Africa, the FIRS is pushing this new directive as part of its efforts to enhance fiscal performance.
“We would like to inform you that the FIRS has directed all Nigerian banks to implement stamp duty on certain transactions that require duty payment, such as contracts and legal mortgages.”
As a result, Nigerian banks have informed their customers that a 0.375% stamp duty charge will be applied to loans backed by legal mortgages, shares, debentures, or bonds, effective immediately.
For instance, Access Bank has informed its customers that the rate will be applied to the value of the legal mortgage, shares, debentures, or bonds, and the collected amount will be remitted to the FIRS.
However, the bank clarified that all previously approved loans will remain unchanged and will be repaid according to the agreed terms and conditions at the time the deal was closed.
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