Tuesday, 19 January 2016

Nigeria Is Finally Broke!! See Why.

The Central Bank Of Nigeria has just announced a N50 stamp duty on commercial bank transactions, i.e you will be charged 50 Naira for any money you receive into your account regardless the transaction means cash/cheque/electronic transfer.

The duty stamp charge is in accordance to the Stamp Duties Ac according to CBN. A Stamp Duty is legal levy that is usually applicable when you make purchases of large sums like home purchase or importation of goods. 

This is where it get interesting, Nigeria main source of revenue is oil, as we all know that oil price is dropping each day drastically with slender chances of increment any time soon. As at today oil price per barrel is $28.31 according to nasdag.com, this commodity once sold for $100+. Instead of Nigeria to use oil revenue of over 30+ years to build other sectors for raining days like this we didn't. We all know what our leaders did with the money, that's another story.

In the government effort to raise fund the CBN had no choice but to introduce stamp duty on bank transactions, this is laughable but necessary- And let's not forget VAT. Nigeria doesn't have no other fully developed and structured sector apart from the communication industry, Banking sector and oil sector. We are in it for it, our dear country is finally broke and things will get much worse in time to come. Guess what, we the people are the ones that will feel the pain more as we can already see the shadow financial pain with the stamp duty introduction!

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