As digital transactions continue to grow in Nigeria, traders across the country are leveraging bank charges to inflate the prices of goods and services. MOYOSORE SALAMI writes on the unintended consequences of these charges and what could be done to address the issue.
The Federal Government’s introduction of stamp duty on electronic transactions in 2020, designed to formalise the economy and raise tax revenue, has not been without controversy.
The policy imposes a small fee of between N50 and N100 on transfers over N1, 000. At first glance, this may appear to be a minor charge, but combined with other banking fees such as transfer fees and service charges, it has led to a significant increase in the cost of doing business, particularly for small traders. While these charges were intended to streamline payments and increase government’s revenue, they have, in practice, put the burden squarely…
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