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CBN’s inaction hinders N2trn postal revenue for govt

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Delay by the Central Bank of Nigeria (CBN) to mandate financial institutions to commence remittance of the N50 – stamp on all bank receipts, in the form of bank tellers, and electronic transfers with values of N1, 000 and above, is hindering about N2 trillion in postal revenues to government.

In January, the Nigerian Postal Service (NIPOST), in strategic partnership with the School of Banking Honours (SBH) had appointed three banks to drive this initiative as mandated by the Stamp Duty Act 2004 (amended in 2010) and NIPOST Act 2004.

The banks, are Stanbic IBTC, Unity Bank and United Bank of Africa (UBA). The project, when fully implemented, is expected to rake in N2 trillion into government coffers and create 300, 000 new jobs, Adetola Adekoya, project consultants, SBH, said in Lagos.

The project, he further explained, has stalled over the past 11 months due to CBN’s inaction and failure to issue a circular mandating all financial institutions to comply with NIPOST statutory mandates even after giving its support for the project.

It would be recalled that in 2009 the CBN issued a somewhat similar circular to all banks on non-compliance of securities companies of banks with the Stamp Duties Act 2004. Adekoya wondered why the apex bank was hesitant in this regard, considering the project’s revenue generation and job creation potentials. “We have already drawn up 14 products revolving around the initiative that would sustain our target of 300, 000 jobs. We have signed an agreement with NIPOST, and everything is in place to begin but the CBN circular is delaying the project”, he further added.

In a letter, dated 3rd December, 2012, and obtained by BusinessDay, the CBN said it had no objection to the initiative. “The CBN has no objection to your actualising the Master Service Agreement between your company and NIPOST on the appointment of Deposit Money Banks (DMBs) and other financial institutions as collecting agents for the stamping and remittance of all teller deposit receipts and electronic transfer receipts”,  the letter, signed by Dipo Fatokun, director, banking and payment systems department of CBN stated. The letter went on to say it “expected that all revenues accruing to the federal government from this transaction will be duly swept into its coffers on a monthly basis.” SBH, the driver of the project, is an Innovation Enterprise Institution (IEI) approved by the ministry of education.

The SBH is expected to drive the policy on banking skills and entrepreneurship studies for Nigerian youths. It was registered as an NGO, and has accreditation from the National Board of Technical Education and the Chartered Institute of Bankers of Nigeria. In keeping with its mandates, and by virtue of its Shadow-Banking Model. According to Adekoya, SBH is engaging senior secondary school leavers, graduates of banking, finance and allied disciplines on all aspects of practical banking operations techniques, to overcome the unfortunate unemployment situation. He added that young emerging bankers would be referred to as ‘Em-bankers’. “Shadow Banking is a brand name that captures the lower career level where Em-bankers will understudy banks, research into bank products, identify gaps therein, package products to fill them, and manage them as part of their educational curriculum.

Article Credit: BusinessDay Newspapper

Updated 5 Years ago

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