Story by Kayode Tokede
The Nigeria Interbank Settlement System (NIBSS) has disclosed that N287.75 billion Point of Sales (PoS) transactions recorded in October this year.
This is coming on the backdrop of proposed plan by the Central Bank of Nigeria and NIBSS to introduce the collection of stamp duty charges for PoS.
NIBSS had reported N283.35 billion Pos transactions in September from N294.04 billion in August.
The data on NIBSS, disclosed that N245.99billion and N279.47billion Pos transaction was reported between July and June 2019.
The remaining months revealed that , N257.7billion PoS transaction was reported in May, N246.1 billion, April; N217.457, March; N193.43 billion, February and N222.92, January.
The NIBSS report disclosed that PoS volume of transactions increased by 50.04per cent on Year-on-Year (YoY) to 41.6 million in October 2019 from 27.7 million in reported in October 2018.
The 41.6million volume of Pos transactions reported in October this year is the highest volume of PoS transactions reported by NIBSS.
NIBSS had reported 28.16 million volume of PoS transactions in January, reaching a peak of 41.38 million volume of PoS transactions in August 2019.
In addition, total number of registered PoS hits 404,283 in October this year.
The NIBSS in its PoS data on its website disclosed that 384,218 registered PoS was recorded in September 2019.
Our correspondent is yet to confirm if CBN and NIBSS have enforced the charge of N50 on PoS transactions.
Before now, the fee paid by merchants on the aggregate PoS transactions carried out on a particular period, which was never passed to customers.
The extra charge on customer’s transaction followed a CBN’s directive to banks to charge N50 Stamp Duty on individual transactions, rather than merchants’ accounts.
The directive on the Unbundling of Merchant Settlement Amounts was contained in the CBN circular to banks, processors and switches, titled: “Review of Process for Merchants Collections on Electronic Transactions”.
The policy stipulates Stamp Duties Payment on individual transactions that occur on PoS, rather than previous plans where charges occurred on aggregate transactions.
The circular signed by CBN Director, Payments System Management Department, Sam Okojere, authorised banks to unbundle merchant settlement amounts and charge applicable taxes and duties on individual transactions as stipulated by regulators.
Merchant Service Charge was also reviewed downward from 0.75 per cent (capped at N1, 200) to 0.50 per cent (capped at N1, 000).
In a NIBSS report titled: “Returns on Stamp Duty Collection for Merchant Transactions”, the payment agency said the new stamp duty payment plan is in line with the provision of the Stamp Duties Act and Federal Government Financial Regulation 2009.
The policy, it added, was aimed at ensuring strict adherence to the CBN guideline communication on the subject, collection and Remittance of Statutory Charges on receipts to Nigeria postal Service under the Stamp Duties Act dated 15th January 2016.
The procedural processing guide for stamp duty Charges for PoS, web merchant and all deposit money banks (DMBs) should download daily PoS/Web settlement report from their respective processors settlement file transfer portal.
Also, the PoS and web settlement processing officer shall ensure that stamp duties are correctly processed daily by downloading daily PoS/web transactions valued at N1, 000 and above, noting the count of these transactions; multiply the count of these transactions by N50 and pass the corresponding debit/charge to the respective merchant accounts.
The apex bank guideline said: “The debit should be passed to the merchant accounts account at the point of PoS/ Web merchant Credit/Settlement to mitigate against the inability of the Deposit Money Banks (DMBs) to successfully secure these daily stamp duties charges and remit as expected.
“These charges are expected to be deposited into the already opened stamp duty collections account at the various DMBs and should form part of the weekly Stamp Duty rendition by the DMBs to NIBSS.”