E-Financial
Court Declares Banks’ Stamp Duty Charges Illegal
A Federal High Court in Asaba has declared as unlawful, illegal, null and void the deduction of the sum of N50 as Stamp Duty charges from the accounts of commercial bank customers in the country.
The court in addition made an order restraining the Central Bank of Nigeria (CBN) and banks from making further deductions unless authorised by law.
Justice Nnamdi Dimgba made the declaration in a judgment he delivered in a suit filed by Mr. Rupert Irikefe, a bank customer, challenging the continued deduction of Stamp Duty charges from his current bank account domiciled with Zenith Bank in Asaba, Delta State.
Irikefe had in 2019 instituted a legal action against the CBN, Zenith Bank PLC and the Attorney General of the Federation as 1st, 2nd and 3rd defendants respectively over the continued deduction of Stamp Duty charges from his current account in Zenith, despite a subsisting court order preventing banks in the country from making such charges.
In the suit he filed and argued by himself, Irikefe prayed the court to hold the CBN and Zenith Bank liable for acting in flagrant disobedience of a valid could order.
According to the plaintiff upon noticing several deductions of N50 and N100 from his bank account with the 2nd defendant being Stamp Duty charges, he had paid two visits to the bank branch in Asaba on September 14, 2018 and October 11, 2018 and told them their action contravened the judgment of the competent courts in the country including the Court of Appeal.
He lamented that rather than refund the monies so far collected the 2nd defendant continued to make further deductions on claims that they were following lawful directives of the first defendant.
Among the reliefs plaintiff sought before the court are whether by the decision of the Court of Appeal in appeal number : CA/L/437A/2014 between Standard Chartered Bank Nigeria limited versus Kasmil International Services Limited and 22 others delivered on April 21, 2016 and suit number: FHC/L/CS/126/2016 between Retail Supermarket Nigeria Limited versus Citibank Nigeria Limited and the CBN delivered on March 13, 2017 which found that “there was no express provision in the Stamp Duty Act or any law authorising the deduction or imposing any obligation to deduct or remit N50 as Stamp Duty on tellers, deposits or electronic transfers of monies from N1000 upwards and accordingly nullified same, the conduct of the 1st defendant and 2nd defendant by continuing to impose, direct the imposition, receive and or charge, deduct or remit the said sum of N50 as Stamp Duty…. from the account of the plaintiff is not wrong in law, dismissive and contemptuous of the law, orders of superior courts of competent jurisdiction, condemnable, null and void and of no effect.
He further asked the court to hold that the conduct of the first and second defendants to continue to make deduction in the name of Stamp Duty despite the subsistence and or awareness or the court of Appeal judgment is arbitrary, unlawful, illegal etc.
He accordingly prayed the court to make “ an order setting aside the imposition, deduction and or remittance or Stamp Duty charges.
“An order directing or mandating the first and second defendants to refund to the plaintiff the total cumulative sum illegally deducted from the commencement of deductions on January 31, 2016 to the date of filing the suit”.
Plaintiff also prayed for the sum of N50 million as general damages and another N50 million as exemplary damages.
“An order of injunction restraining the defendants from further deducting the sum of N50 Stamp Duty on teller’s deposits and or electronic transfers on Money transaction… unless authorised by law”.
Delivering judgment, Justice Dimgba who noted that the first defendant “acted in bad faith”, said, “I have never ceased to wonder, the practice that is very much exacerbated in current climes, where agencies of the government treat decisions of Court of law with disdain and to carry on as if those decisions were not in existence”.
The judge also noted that the second defendant willingly disobey the judgment of court when it acted recklessly and at its own peril to continue to deduct Stamp Duty charges from the plaintiff’s account in the face of clear and binding judicial decisions arising from judicial proceedings which the second defendant itself participated.
“All things considered, it is trite that a judgment not appealed against or set aside by a higher court is valid, subsisting and binding on all parties”.
While upholding the argument of the plaintiff, Justice Dimgba further held that the defendants did not place before the court any judgment or order of superior courts overriding the ones plaintiff anchored his case on.
He further held that the defendants failed to present to the court any amendment to the Stamp Duty Act empowering them to continue to make the deductions.
“In the absence of the above, it is irresistible to say that the suit has merit and should succeed.
“I hereby resolve the questions posed in the Originating Summons in favour of plaintiff.
“I enter judgment in favour of plaintiff on the following terms. Reliefs 1,2,3,4,5 and 8 are hereby granted.
“Relief 6 is refused. 7 is granted but limited to the sum of N2 million.
“Cost of N500,000 in favour of plaintiff jointly and severally”.
The judge added that, “This relief is granted to set an example that it is reprehensible conduct to willfully disobey decisions of competent court of law”.
Nigerians lost N25.85 billion to digital payment fraud in 2025, according to Central Bank of Nigeria (CBN).
Though the figure represents a significant decline from the N52.26 billion recorded in 2024, CBN, said the losses remained substantial for payment service providers (PSPs).
According to the report, although the value of digital payment fraud declined significantly year-on-year, when compared to the N52.26 billion recorded in the previous year, the losses remained substantial for Payment Service Providers (PSPs), underscoring the need for stronger fraud prevention measures across the industry.
In the report, the CBN, also identified systemic risks, cyber threats, the dominance of a few systemically important payment service providers, and the activities of unlicensed payment companies as major concerns confronting the financial sector.
According to the report, although the value of digital payment fraud declined significantly year-on-year, the losses remained substantial for Payment Service Providers (PSPs), underscoring the need for stronger fraud prevention measures across the industry.
“Digital payment fraud in Nigeria stood at N25.85 billion in 2025,” the apex bank said.
It noted that while this represented a considerable improvement from the N52.26 billion lost in 2024, the amount remained significant.
“Though this was lower than N52.26 billion in the preceding year, it represented a substantial loss for PSPs,” the report stated.
The CBN attributed the reduction in fraud losses to enhanced security measures implemented across the financial sector.
It said, “The lower losses in 2025 reflected improvements in monitoring, BVN-NIN integration, and tighter controls.”
Beyond fraud, the report warned that Nigeria’s rapidly expanding digital payments landscape faces increasing systemic vulnerabilities as banks and fintech companies become more interconnected through shared payment infrastructure.
According to the report, a major operational failure involving a single payment service provider could quickly spread across the financial system because of the growing dependence on integrated payment platforms.
The CBN observed that despite ongoing efforts to strengthen payment system integration, interoperability remains a significant challenge.
It disclosed that about half of fintech stakeholders continued to express dissatisfaction with the current level of system-wide interoperability.
The report stated that “about 50.00 per cent of fintech stakeholders continued to rate system-wide interoperability as poor, primarily due to the lack of universal APIs and data-sharing standards.”
The apex bank also expressed concern over the concentration of payment activities among a few Systemically Important Payment Service (SIPS) providers, warning that operational failures involving any of them could have widespread consequences.
It explained that the failure of such providers could trigger a “domino effect”, where insolvency or operational glitches in one payment service provider spread rapidly to others, disrupting the smooth functioning of the financial system.
Cybersecurity also featured prominently among the risks identified in the report.
The CBN warned that payment service providers remain vulnerable to ransomware attacks, data breaches and credential theft, noting that cybercriminals are becoming increasingly sophisticated in targeting financial institutions.
According to the report, “Banking and fintech institutions remained prime targets for ransomware, data leaks, and credential theft.”
It added that, “Cyber threats in Nigeria are no longer random cybercrimes, but increasingly targeted, organised, and identity-driven campaigns.”
The report further cautioned Nigerians against transacting with unlicensed payment companies, stressing that such entities operate outside regulatory oversight and expose users to significant financial risks.
It warned that customers using unlicensed PSPs are not protected by existing regulatory safeguards and that such operators could facilitate illicit financial activities.
“Users of unlicensed PSPs are not covered by regulatory protection that comes with effective oversight and supervision,” the CBN said.
It further warned that, “Unlicenced payment companies are gateways for money laundering which could undermine regulatory efforts and corrode public trust.”
The report underscores the growing importance of strengthening fraud detection systems, improving payment infrastructure interoperability, enhancing cybersecurity resilience, and intensifying regulatory oversight as Nigeria continues to expand its digital payments ecosystem.
Nigeria Revenue Service (NRS) yesterday announced that medium and large companies in Nigeria that earn income from cryptocurrency and other virtual asset transactions will now be subject to a 30 per cent corporate income tax.
NRS stated this in its new guidelines setting out a tax framework for cryptocurrency and other digital asset transactions.
The guidelines cover registration, record-keeping, valuation, and tax treatment for VASPs, P2P operators, and individuals in the virtual asset space.
NRS said the move is aimed at encouraging voluntary compliance and improving transparency as Nigeria’s digital asset sector grows.
The Guidelines on the Taxation of Virtual Assets, provide a comprehensive framework for the taxation of virtual asset transactions and businesses operating within Nigeria’s digital economy.
The guidelines apply to companies, individual taxpayers, Virtual Asset Service Providers (VASPs), peer-to-peer (P2P) marketplace operators and other participants in the virtual asset ecosystem
The latest framework follows the signing of the Presidential Executive Order on Virtual Assets Coordination, 2026 by President Bola Tinubu, which established a coordinated regulatory structure for cryptocurrencies, stablecoins, tokenised assets and other digital assets across government agencies.
According to the NRS, companies that derive profits from virtual asset activities will be taxed under the provisions of the Nigeria Tax Act (NTA), 2025. While small companies will continue to enjoy applicable tax exemptions under the law, medium and large companies will be liable to the standard 30 per cent corporate income tax rate.
The agency stated that taxable income under the guidelines covers a broad range of virtual asset-related activities, including cryptocurrency trading, the operation of virtual asset exchanges, transaction fees, brokerage commissions, custody and wallet services, token issuance, mining, staking, decentralised finance (DeFi) activities, investment gains and other virtual asset business operations.
According to the guidelines, “Applicable rates under the NTA include progressive rates for individuals, and 30 per cent for companies other than small companies.”
The NRS said the guidelines were introduced to provide clarity, certainty and consistency in the administration of Nigeria’s tax laws as they apply to virtual assets, adding that the framework is intended to improve transparency, encourage voluntary tax compliance and support the development of an efficient tax regime for the digital asset sector.
The agency also clarified that merely holding cryptocurrencies or other virtual assets does not constitute a taxable event.
Any appreciation in the value of a digital asset while it remains in a taxpayer’s possession will not attract income tax until the asset is sold, exchanged or otherwise disposed of through a taxable transaction.
Similarly, transfers of cryptocurrencies or other virtual assets between wallets owned and controlled by the same individual are exempt from income tax, provided there is no change in beneficial ownership.
This means that moving digital assets such as Bitcoin or Ether between personal wallets will not trigger a tax liability.
However, the exemption does not extend to transfers involving companies, partnerships, trusts, unincorporated associations or other legal entities, where different tax rules may apply.
The NRS further explained that although these non-taxable transactions do not attract immediate tax, they establish the acquisition cost for future disposals.
Consequently, taxpayers are required to maintain adequate records of acquisitions, transfers and disposals to facilitate accurate tax computations when taxable events occur.
The guidelines also reaffirm that unrealised gains on cryptocurrencies and other virtual assets are not subject to income tax. Instead, tax liability arises only when a taxable disposal takes place, aligning Nigeria’s approach with internationally recognised principles for the taxation of digital assets.
The issuance of the guidelines is expected to provide greater regulatory certainty for investors, businesses and digital asset service providers, while strengthening the government’s efforts to expand the tax base and improve compliance in Nigeria’s growing virtual asset ecosystem.
As more Nigerians adopt digital financial services, fraudsters are also finding new ways to target unsuspecting users. Nigeria has recorded more than 24.1 million compromised online accounts since 2004, with hundreds of thousands of additional cases reported in early 2026. While these figures are not limited to financial accounts, they highlight the growing exposure of personal information and login credentials online.
Fraudsters often use phishing links, impersonation and other social-engineering tactics to trick people into revealing sensitive information such as passwords, OTPs, BVN or NIN details.
To help users strengthen the security of their accounts, PalmPay provides a range of built-in protection tools. One of these is the Transaction Guard.
The feature enables users to set single, daily, or monthly transaction limits. Whenever a transaction exceeds that limit, an additional verification step; facial verification- is required before it can be completed. This helps reduce the risk of unauthorized transfers, even if an account has been compromised.
Here’s how Transaction Guard helps keep your money safe:
- Keeps User in Control
The feature gives you greater control over your account by ensuring that higher-value transactions require your facial verification before they are processed. Transaction Guard requires facial verification before eligible transactions are completed, making it harder for unauthorized users to move your funds.
- Helps Mitigate Account Takeovers
Even if your login credentials or OTP are compromised, Transaction Guard helps limit potential losses by requiring an additional verification step that fraudsters cannot easily complete.
- Reduces the Risk of Fraud
By activating this security checkpoint, Transaction Guard helps protect users against common fraud attempts, giving them greater confidence when faced with scam attacks.
In a recent interview, Femi Hanson, Head of Marketing, PalmPay said: “Nigerians are increasingly embracing digital payments in their everyday lives hence maintaining trust and confidence of users must remain a top priority. Today, security is just as important as speed and convenience. That’s why PalmPa is continuously investing in solutions that give our customers greater control over their finances. Transaction Guard is one of those security features we’ve introduced to help users add an extra layer of protection to their accounts and mitigate fraud.”
How to Activate Transaction Guard
Activating Transaction Guard is quick and easy. Simply open the PalmPay app, go to Profile, tap Security Center, select Transaction Guard, switch it on, and complete the verification process.
As digital payments become embedded in everyday life, taking advantage of built-in security features can make a significant difference. By enabling Transaction Guard, PalmPay users can better protect their accounts and enjoy a safer, more secure digital banking experience.
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