GTBank, First Bank Implement New ₦50 Stamp Duty on Foreign Transactions Exceeding ₦10,000

Two of Nigeria's leading banks, Guaranty Trust Bank (GTBank) and FirstBank, have begun levying a ₦50 stamp duty fee on all foreign transactions exceeding ₦10,000.

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This new policy, effective immediately, applies to both debit and credit card transactions and inward transfer made in foreign currencies or settled in naira using a domiciliary account.

The implementation of this fee follows the directive issued by the Central Bank of Nigeria (CBN) in December 2023, mandating financial institutions to collect and remit a ₦50 stamp duty on applicable electronic transactions.

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It also corresponds with the latest directive from the Federal Inland Revenue Service (FIRS) to Nigerian banks regarding the deductibility of the Electronic Money Transfer Levy (EMTL) from foreign currency inflows.

While the initial focus was on local transactions, the extension to foreign transactions marks a significant shift in cost structure for individuals and businesses making international payments.

Analysts suggest the move could dampen overseas spending, particularly for smaller transactions. For regular travelers or those making frequent online purchases abroad, the cumulative effect of the ₦50 fee could add up. However, for larger transactions, the impact might be negligible.

GTBank and FirstBank, in separate statements, acknowledged the potential concerns and emphasized their commitment to transparency and regulatory compliance.

They assured customers that the collected stamp duties will be forwarded to the appropriate authorities as stipulated by the CBN.

It remains to be seen if other Nigerian banks will follow suit and implement the ₦50 stamp duty on foreign transactions.

The coming weeks and months are likely to reveal the broader impact of this new policy on consumer behavior and international trade activity within the Nigerian financial landscape.

Overall, this development have impact in such that each time you receive foreign currency in your GTBank Account or FirstBank Account equal to or more than ₦10,000, the bank will deduct a stamp duty fee of ₦50.