To the shock of many of its customers, Access Bank failed to implement a mandated stamp duty charge on time. The failure to implement the charge in a timely manner meant that many of its customers were met with unexpected debits on their accounts over the weekend.
Access Bank admitted in an email that it did not implement stamp duty charges on applicable transactions between February 1, and April 30, 2020. The stamp duty pertains to naira-denominated deposits and electronic transfers of 10,000 and above in current and savings accounts. For three months, Access Bank did not implement the charge as expected.
Access states in the email,
“We recently discovered that the charges on applicable transactions carried out between February 1, 2020, and April 30, 2020, were inadvertently not passed on your account. We sincerely apologise for this.
“However, in compliance with the CBN mandate, we will be required to process the accumulated charges for the said period on your account for remittance to the Central Bank of Nigeria. We request that you fund your account to accommodate this charge,”
The Central Bank of Nigeria requires a stamp duty charge of N50 for owners of savings and current accounts for transactions over N10,000. Owners of such accounts have to pay N50 for every transaction or deposit worth over N10,000.
Over the weekend, many people were hit with unexpected debits to their account. Many customers were unaware of Access Bank’s intentions or the Finance Act which was signed into law in January 2020. The law imposes the duty charge on transactions above N10,000.
Nigeria’s financial industry has been plagued by many overt and covert costs to bank accounts. This is considered as one of the driving forces behind the nation’s adoption of cryptocurrencies. In contrast to the mounting costs of holding a bank account with a Nigerian bank, Bitcoin holders around the world face fewer comparable costs and higher profitability rates.
Blockchain data company, Glassnode released new data which reveals that 83% of existing Bitcoin addresses are in a state of profit. The figure represents a positive increase since the decline of prices in March.
If compared for profitability against Bitcoin account holders, data reveals that Nigerian banks have failed to meet the expectations of their customers. Traditional banks continue to clutch to antiquated practices that erode the trust and quality of life for their customers. It is no wonder that Bitcoin is thriving in current market conditions.
