E-Financial
FG Slams N50 Levy on Electronic Money Transfer of up to N10,000
The Finance Act 2020 recently signed into law by President Muhammadu Buhari, imposes N50 levy on electronic transfer of money deposited in any bank or financial institution on any account on sums of N10, 000 or more.
The revenue, according to the Act, is to be shared based on derivation 15% to FG & FCT and 85% to states.
The new law which introduces over 80 amendments to 14 different laws and takes effect from 1st January 2021, however, cancels out stamp duty charge on electric transfers.
The Act, among other provisions, notably exempted workers who earn N30,000 minimum wage or less from personal income tax and excempted commercial airline ticket from value added tax (VAT)
These are some of the key highlights of the Act as identified by the PricewaterhouseCoopers (PWC).
The notable changes introduced by the Act, as identified by the firm include: “Compensation for loss of office up to N10m exempted from capital gains tax. Tax due on excess above N10m is to be deducted by the payer and remitted within the time specified under the PAYE Regulations.
“Minimum tax for companies in respect of returns for years of assessments due between 1st Jan 2020 and 31st Dec 2021 has been reduced from 0.5% to 0.25% of gross turnover less franked investment income.
“Cost of donation made in cash or kind to any fund set up by government in respect of any pandemic or natural disaster to be tax deductible subject to a maximum of 10% of assessable profit after other allowable donations.
“FIRS may prescribe the form of accounts other than audited financial statements for small and medium companies as defined under CITA.
“Service of notice of assessment and objections under CITA may be done via courier service, email or other electronic means as may be directed by FIRS in a notice. Tax Appeal Tribunal may conduct its hearing remotely via virtual means, using such technology or application as may be necessary to ensure fair hearing.
“Public character for the purpose of tax exemption requires an organisation or institution to be registered in accordance with relevant laws in Nigeria and does not distribute or share its profits in any manner to members or promoters.
“A small or medium company engaged in primary agricultural production may be granted pioneer status for an initial period of 4 years and an additional 2 years (making a total of 6 years).
“Gross income for personal relief purposes has been redefined as income from all sources less non-taxable income, exempt items and income on which no further tax is payable. In the case of an enterprise, less all allowable business expenses and capital allowance.
“Exemption of low-income earners earning minimum wage or less from personal income tax.
“Goods liable to excise duties have been expanded to include telecommunication services provided in Nigeria as may be prescribed in the law or an Order issued by the President.
“Reduction of import duty on Tractors from 35% to 5%; Mass transit vehicles for transport of more than 10 persons and Trucks from 35% to 10%, and reduction of import levy on Cars from 30% to 5%.
“Taxable supply with respect to goods is defined to include where the beneficial owner of the right in or over goods is a taxable person in Nigeria or the goods or right is situated, registered or exercisable in Nigeria. Services include those consumed by a person in Nigeria whether rendered within or outside Nigeria excluding employment; and in respect of incorporeal, includes exploitation of a right, acquisition of or assignment of rights by a person in Nigeria and incorporeal connected with tangible or immovable asset located in Nigeria. Goods exclude land and building, money or securities.
“A non-resident person that makes a taxable supply to Nigeria is required to register for tax and obtain TIN, include VAT on its invoice, and may appoint a representative in Nigeria for the purpose of its tax obligations. The FIRS may issue guidelines this purpose.
“Exemption of commercial airline ticket from VAT, and hire or lease of agricultural equipment for agricultural purposes.
“Deletion of electronic bank transfer as transaction liable to stamp duty and introduction of electronic money transfer levy of N50 on electronic transfer of money deposited in any bank or financial institution on any account on sums of N10k or more. Revenue is to be shared based on derivation 15% to FG & FCT and 85% to states.
“Accountant General for the Federation to open dedicated accounts for each tax type for the payment of tax refunds to be administered by the FIRS and funded based on annual budgets for tax refund for each tax-type as may be approved by the National Assembly.
“For companies operating in the free trade zones, exemption from taxes is subject to compliance with tax filing and returns obligation to the FIRS under section 55(1) of CITA.
“Establishment of a Crisis Intervention Fund of N500b or other sums as may be approved by the National Assembly; and by way of trust, as a sub-fund of the Crisis Intervention Fund, an Unclaimed Funds Trust Fund.
“Unclaimed dividends in a listed company and unutilized amounts in a dormant bank account outstanding for 6 years or more to be transferred to the Unclaimed Funds Trust Fund as a special debt to the Federal Government to be managed by the Debt Management Office and shall be available to the shareholder or account holder at any time together with the yield thereon.
“Balance of operating surplus of a corporation shall be paid to the CRF of the Federation on a quarterly basis. Finance Minister may effect a direct deduction from TSA or other accounts of a corporation to enforce compliance. Also, it is prohibited to reduce contract values or splitting of procurement to evade the use of the appropriate procurement method.”
The Securities & Exchange Commission (SEC) has challenged registrars and other Capital Market Operators (CMOs) to drive innovations and explore new opportunities in unlocking current changes in the global market.
This was stated by Dr. Emomotimi Agama, Director-General, SEC, at the Institute of Capital Market Registrars (ICMR) 14th Annual Conference & Presidential Investiture during the weekend in Lagos.
The theme of the 2025 conference was, “Unlocking Global Value: The evolving market role of capital market registrars in trust, efficiency and innovation.”
Agama who was represented by executive commissioner (Operations), SEC, Mr. Bola Ajomale, charged registrars to remain innovative and proactive, warning that unregulated players could take over their functions if the profession fails to evolve.
In a goodwill message, the Group chairman of NGX Group, Alhaji (Dr.) Umaru Kwairanga, described registrars as ‘the quiet custodians of confidence and credibility’ whose accuracy and efficiency underpin investor trust and corporate governance.
Group Vice President of Dangote Industries Limited, Mr. Olakunle Alake, who delivered a keynote address, outlined three imperatives for the registrar profession.
“Digitization and cybersecurity: embrace digital platforms, but with robust safeguards to protect data integrity. Capacity building and training: continuous education must be non-negotiable. The world is changing too fast for outdated skills. Global benchmarking: aim not just to meet local standards, but to benchmark against global best practices,” he said.
Founder and vice chairman of Emerging Africa Group, Dr. Toyin Sanni, urged registrars to reposition themselves as trusted, tech-enabled partners in the investment value chain.
IFC has announced investments totaling $310 million in projects that will support the growth of smaller businesses and job creation across several African countries. The projects were announced at the Africa Financial Summit (AFIS), which convened private and public sector representatives from across Africa under the theme of mobilizing domestic capital at scale for development.
The two-day event, co-hosted by IFC, the Jeune Afrique Media Group, and the Kingdom of Morocco, featured discussions among African central bank governors, regulators, financial institutions, and fintech innovators on how Africa can best tap its own resources—and attract more foreign investment—to shape the continent’s financial future, create jobs, and sustainably grow its economies.
On the sidelines of AFIS, IFC announced partnerships with several financial institutions that will channel funds and support towards businesses in Egypt, Ethiopia, and Morocco, helping businesses grow and reach new markets.
The new projects IFC announced are:
- A $50 million financing package to Suez Canal Bank will expand lending to smaller businesses across Egypt, particularly in underserved regions. A quarter of the loan is earmarked for women-owned businesses to help bridge the gender financing gap and boost inclusive growth.
- A $10 million equivalent IFC local-currency risk-sharing facility with Attijariwafa Bank Egypt to expand access to finance for smaller businesses and support job creation. At least a quarter of the loans are earmarked for women-owned businesses, and half to SMEs in vulnerable communities. The initiative is supported by the Prospects Partnership, which supports development for host communities and forcibly displaced people.
- A $250 million IFC risk-sharing facility with newly established Saham Bank will strengthen Morocco’s financial stability and expand access to finance for local businesses. IFC will share up to 50 percent of the credit risk on the bank’s $500 million corporate loan portfolio, helping sustain lending to key sectors. Saham Bank recently acquired Société Générale Marocaine de Banques.
- An IFC advisory services support program for VisionFund to help the microfinancier expand lending to smaller businesses and deepen financial inclusion in Ethiopia. The project will strengthen VisionFund’s capacity in strategic business planning, risk management, and responsible finance, enabling it to reach more underserved entrepreneurs—especially women. This initiative follows IFC’s recent $10 million local currency loan to VisionFund.
Ethiopis Tafara, IFC’s Vice President for Africa, said, “The combination of Africa’s own financial resources with strategic international capital is a potent recipe for growth on the continent. Africa’s entrepreneurs are building companies that rival any in the world—and with the right support, they can grow and create the jobs and opportunities Africa needs. These projects underscore the power of partnerships as well as the important role of events like AFIS in bringing together like-minded organizations for development and impact.”
AFIS was established in 2021 to promote a shared understanding among public authorities and private sector leaders of the trends and risks shaping the continent’s financial industry. Through open dialogue and collaboration, AFIS helps identify opportunities for improvement, whether through regulatory reforms or market-driven initiatives.
This year’s event brought together more than 1,250 senior leaders from Africa’s financial sector—including those who manage Africa’s savings with those who can channel international investment—with the aim of delivering more funds to job-creating African businesses and projects.
Over the past two decades, IFC has collaborated with more than 300 financial institutions across 40 African countries to enhance banking systems, expand access to finance, and mobilize private capital. This partnership has helped build the foundations for opportunity—fueling enterprise, enabling jobs, and driving the continent’s next generation of growth.
Justice Rahman Oshodi of the Lagos State Special Offences Court in Ikeja on Wednesday, convicted and sentenced Samuel Asiegbu, former financial and retail product manager with Wema Bank Nigeria Plc, to three years in prison for hacking and stealing N8.56 billion from the bank vault.
Justice Oshodi jailed Asiegbu, without the option of a fine, after pleading guilty to the eight-count charge of conspiracy, fraud and unauthorised access to a computer system.
The convict was accused by the Economic and Financial Crimes Commission (EFCC) alongside Hamza Zakaria, Nurudeen Ibrahim and Alhaji Sulaiman of manipulating the bank’s internal systems in January 2025 to cause a financial loss of over N8.5 billion.
The anti-graft agency informed the court on June 23, 2025, when the defendants were first arraigned, that the offences violate Sections 409 and 386 of the Criminal Law of Lagos State, 2011.
All the defendants had initially pleaded not guilty to the charge.
However, Asiegbu later changed his plea to guilty, leading to his conviction and sentencing.
Justice Oshodi sentenced the convict to 10 months and 8 days in prison for count three and 1 year and 8 months for count four, both sentences are to run concurrently and without an option of a fine.
The court subsequently struck out counts one and two.
The judge has fixed November 14 for the commencement of the trial of the remaining defendants.
FG Okays Biometric Upgrades @ Airports, Others
Lassa Fever’s Death Toll in Nigeria Hits 176- NCDC
Senate Committee Says $300Bn Lost to Oil Theft
SEC Tasks Registrars, Other CMOs on Innovations
Glo Rolls Out ‘Take a Guess,’ Bringing Fun and Big Wins This Season
E-Financial2 days agoZachXBT, Crypto Investigator Lists Nigeria, Others as Worst Jurisdictions for Scam Victims
Telecom2 days agoFUNAAB 500-Level Student Wins 5th Brand New Car at MTN Pulse Campus Invasion
Telecom2 days agoLagos to Launch Automated Telecom Permit System by 2026
Telecom2 days agoEricsson, MTN Nigeria Boost Network With New Tech
News2 days agoFG Taps John Nwabueze as First Tax Ombudsman
E-Business2 days agoReport Reveals DLL Hijacking Attacks have Doubled since 2023
Telecom2 days agoGlo Unveils New “Glo Collabo Bundles,” Offers More Value for Less
E-Financial2 days agoFirms Eye Fintech Model for Insurance