The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) recently indicated that it would probe commercial banks over stamp duty collections. According to the spokesman of the agency, Mr. Ibrahim Mohammed, the probe would involve a forensic investigation of the funds so far collected as stamp duty by 22 Deposit Money Banks from 2000 to 2018. The RMFAC has reportedly concluded plans to engage the services of reputable forensic audit firms to carry out the probe.
There is no doubt whatsoever that what the RMAFC intends to do is within its statutory rights. For instance, Section 162(1) of the 1999 Constitution (as amended), invests the agency with the powers to monitor all revenue accruals into the Federation Account, except the proceeds from the personal income tax of the personnel of the armed forces of the Federation, the Nigeria Police Force, the Ministry or department of
government charged with responsibility for Foreign Affairs and the residents of the Federal Capital Territory,
Abuja. Therefore, the agency should go ahead with the probe. It is also good that it has secured the approval of the National Economic Council (NEC) to do so following the dissatisfaction with what the banks had remitted into the Stamp Duty Account domiciled at the Central Bank of Nigeria (CBN).
At present, about N33billion is reported to be the total amount so far remitted by the banks. The amount is adjudged by the agency to be far below the projected revenue. RMAFC is optimistic to recover at least N100billion at the end of the forensic audit. NIPOST is the operator of the Stamp Duty Act. Under the Act, commercial banks, through the appropriate legal and regulatory framework, are given the approval to deduct N50 on every deposit with a value of N1,000 and above. The implementation date was January 2000. However, salary and savings accounts are exempted.
For transparency and accountability purposes, we support the forensic audit of the banks over stamp duty collections. The probe will reveal how much the banks had remitted to the Federation Account as provided by the Constitution. We recall that Stamp Duty collection became a controversial issue in 2016, when the Federal Government announced that it would use it to shore up its dwindling revenue. To give weight to the measure, the CBN dedicated an account known as CBN Stamp Duty Account into which all collections accruing from the stamp duty would be paid.
It was estimated that the total cash lodgments into various bank accounts, cash transfers from Point of Sale (PoS), Automated Teller Machine (ATM), Mobile-bank- ing transactions, might reach 52 million bank accounts based on Bank Verification Number (BVN). Based on this estimation, it was projected that government would realise about N2.5billion daily, an amount that could stimulate the economy. We urge the agency to make the outcome of the probe public. This matter should not be swept under the carpet in the usual Nigerian manner. All unremitted stamp duty collections must be recovered. Any commercial bank found wanting in the exercise must be adequately sanctioned to serve as a deterrent to others. It is also important that the CBN, which warehouses the stamp duty account, should let the public know exactly how much revenue it has realised from the stamp duty over the period. We believe that the public should know how much government has realised from stamp duty. We urge the National Assembly to amend the NIPOST Act that will enable the postal organisation to expand the economy and attract more revenue to the government. Government should use this opportunity to strengthen the Stamp Duty Act (2004) in such a manner that revenue accruing from it is accounted for.
As the regulatory authority of the banks, we suggest that the CBN should also be part of the probe. We call for strict compliance with the CBN circular on all payment platforms by Deposit Money Banks. Above all, let the RMAFC handle the matter expeditiously.