News
Stamp Duty Is Revenue Stamp, Not Postage Stamp, LIRS Chief Clarifies
Mr Tokunbo Akande, Special Adviser to the Executive Chairman of the Lagos State Internal Revenue Service, LIRS, has clarified the misunderstanding about stamp duty as he maintained that it is a revenue stamp and not a postage stamp.
Akande made this known while featuring as a guest on The Tax Talk programme on Channels Television recently.
He said contrary to public opinion, stamp is not just for courier services as it is meant to certify the underlying transaction between two entities, whether they are corporate entities or individuals, thus, the framework for stamp duty is to verify the documents for underlying transactions and ensure that they are admissible in court in case any disputes arise.
Akande noted; “It’s interesting to note that stamp duty, a tax law that dates back to 1939, is still in effect today. Although it was reenacted in 2004 and has been updated over time through the Finance Act, the basic premise remains the same.
“Stamp duty places the responsibility on those involved in certain transactions to provide documentation that explains the details of the transaction. For example, if someone purchases an item from another person, a receipt is given to show the transaction.
“This receipt must be stamped to be considered admissible evidence in court in case any disputes arise. In the past, the postal stamp was used to denote the stamp duty.”
Akande, who noted that Stamp duty has contributed significantly to revenue generation in Lagos State, as the state has generated over N5 million from stamp duty over the past few years, said the agency believes there is still room for improvement.
While stating that the agency is considering the introduction of revenue stamps for wholesalers and distributors for receipts over N10,000 in the state, he noted; “This approach was previously utilized in the 1970s, and we are eager to revitalize it. We are fully committed to engagement and process improvement.
He said the agency has taken the step of digitizing its stamp duty operation by transitioning from manual to electronic processes.
According to Akande, “The Joint Tax Board (JTB), which oversees all Internal Revenue Services (IRSs), the Federal Inland Revenue Service (FIRS), customs, immigration, and other related bodies, has been at the forefront of promoting awareness about stamp duty in general.
“LIRS (Lagos State Internal Revenue Service) has also made significant efforts in this area by holding town hall meetings, issuing public notices and guidance notes, and engaging with professional bodies.
“However, despite these efforts, the message has not been fully received. It is important to note that the law requires that all transactions between two entities must be stamped, and even items such as cheques have a small stamp on them.
“This is because they may be admissible in court. Therefore, it is your responsibility to ensure that any documents related to transactions above a certain level of expenses are properly stamped, as failure to do so renders them as ordinary paper.
He said LIRS has expanded its presence across various states, with offices conveniently located to better serve taxpayers as its officials are proud to offer assistance with legal proceedings and have desks located in all the courts of Lagos.
“Our team of experts ensures that all necessary documents are properly stamped and verified by the commissioner for stamp duty. We take record-keeping seriously, as it helps to ensure the authenticity of all documents that pass through our hands.
“Proper stamping of documents is essential, whether you’re borrowing money from a bank or renting a property. Failure to do so could render them inadmissible in court. We are here to help certify your documents and ensure they have the necessary stamps to make them legally binding,” Akande submitted.
Dangote oil refinery, indigenous oil refinery owned by Aliko Dangote, Africa’s richest man, is reselling cargoes of U.S. and Nigerian crude, four trade sources familiar with the matter said on Friday, according to a Reuters report.
Aliko Dangote
Three of the sources indicated that the reoffer was linked to technical problems at the refinery.
However, a Dangote executive, when asked about the offers and market rumours of operational issues affecting the crude distillation unit (CDU), stated that the CDU is in operation.
The refinery, which began production in January, is set to become the largest in Africa and Europe upon reaching full capacity.
This could significantly alter the lucrative Europe-to-Africa fuel trade and transform Nigeria into an exporter of fuels.
Among the grades being offered were Nigerian Escravos and Forcados crude, as well as U.S. WTI Midland crude, according to the sources. Traders have reported that the plant has been importing several crude cargoes monthly.
While resales by refineries are rare, they are not unheard of, traders noted. Following the news, crude prices fell further, with Brent crude dropping as much as 2.5% towards $80 a barrel, before recovering to above $81 by 1700 GMT.
The 650,000 barrel-per-day refinery, built at $20 billion by Africa’s richest man Aliko Dangote, aims to reverse Nigeria’s reliance on fuel imports despite being Africa’s largest oil producer.
Tomorrow is your birthday Madam, kindly permit me to be the first to strike a positive chord and shine a spotlight on you, an exceptional woman, who is helping shape modern finance in Nigeria and indeed the world.
Dr. Nneka Onyeali-Ikpe, GMD/CEO, Fidelity Bank
You are inspirational, an elegant stallion that radiates beauty in brilliance.
Meet, Dr. Nneka Onyeali-Ikpe, OON, an Amazon and group managing director and chief executive officer, Fidelity Bank Plc who turns 60 in a few hours.
She is a leader who instills in her people a hope for success and a belief in themselves.
Born July 28, 1964 in Lagos, Dr. Nneka Onyeali-Ikpe, is a creative problem solver motivated by obstacles.
The desire to overcome a challenge fuels her to get things accomplished.
She does not take ‘no’ for an answer.”
Dr. Nneka Onyeali-Ikpe, joined Fidelity Bank as an executive director in 2015 and was appointed managing director/CEO in January 2021, becoming the first female MD/CEO in the bank’s history.
The birthday lady holds a Bachelor of Law from the University of Nigeria, Nsukka, and a Master of Law from King’s College London.
She has attended executive training programs at various institutions including Harvard Business School, The Wharton School University of Pennsylvania, and London Business School.
Additionally, she recently completed a Diploma program in Organizational Leadership at Said Business School, Oxford University, UK.
She holds an honorary doctorate degree in Business Administration from the University of Nigeria, Nsukka (UNN) and is an Officer of the Order of the Niger (OON), awarded by the Federal Government of Nigeria in 2023.
In 1990, she began working in banking as a legal officer for the now-defunct African Continental Bank. She subsequently worked as a treasury officer for the First African Trust Bank.
She later joined Zenith Bank and Standard Chartered Bank respectively.
Nneka Onyeali-Ikpe has held leadership positions at Citizens International Bank, Zenith Bank, and Standard Chartered Bank, among others.
She has been instrumental in structuring complex transactions across various sectors including Oil and Gas, Manufacturing, Aviation, Real Estate, and Export.
In 2011, she joined Enterprise Bank as an executive director of the bank’s operations in Lagos and other locations in the South-Western region in Nigeria.
Nneka Onyeali-Ikpe joined the commercial bank Fidelity as an executive director in January, 2015. Fidelity Bank announced Onyeali-Ikpe as its managing director in December 2021.
Under her leadership, Fidelity Bank witnessed significant growth, increasing its Profit Before Tax (PBT) from N25.22bn in FY 2021 to N122bn in FY 2023.
She has led the bank’s expansion into international markets, including the recent approval by the Central Bank of Nigeria to acquire Union Bank UK, now Fidelity Bank UK Limited.
Passionate about innovation and technology, Nneka Onyeali-Ikpe has spearheaded initiatives such as PayGate Plus, an online payment platform, and the Fidelity International Trade & Creative Connect (FITCC) aimed at supporting Small and Medium Enterprises (SMEs) globally.
In recognition of her leadership, Nneka Onyeali-Ikpe has received several awards including The Banker of the Year 2022 at the 14th Leadership Annual Conference, Best Banking CEO Nigeria 2023 in the 2023 Global Banking & Finance Awards, 2023 Top 25 CEOs in Nigeria at the BusinessDay Awards, and Banker of the Year 2022 at the Champion Newspapers’ Awards of the Year 2022.
She also received acknowledgment from the Assets Management Corporation of Nigeria (AMCON) for her role in restructuring the former Enterprise Bank. As an Executive Director, she oversaw operations in the Lagos and southwest regions, managing the Retail and SME divisions. Additionally, she played a key role in establishing the Bank’s SME group.
She serves on various Committees and organizations including the Financial Literacy and Public Enlightenment Sub-Committee of the CBN Bankers Committee and the Chartered Institute of Bankers of Nigeria.
Onyeali-Ikpe is married to Dr. Ken Onyeali Ikpe, PhD, a leader in Marketing, Branding, and Consumer Consulting.
As you celebrate tomorrow (July 28), may you have all the love your heart can hold, all the happiness a day can bring, and all the blessings a life can unfold.
May the years ahead be greater.
Happy birthday, God Bless!
The proposed 5 percent tax on companies earning over N100 million for community development projects could result in the exits of multinationals from the country, a new report by Afrexim Bank has said.
“Nigeria’s National Assembly is considering a 5 percent levy on big companies to invest in community projects, despite opposition from companies and their supporters.
Critics argue that companies already pay 20-30 percent of their profits in corporate taxes and the plan could prompt international companies to leave the market,” the report titled Monthly Developments in the African Macroeconomic Environment stated.
However, the bill has faced rejection from the organized private sector.
The Manufacturers Association of Nigeria (MAN), which sent representatives to the public hearing organized by the parliament, described the proposal as ill-timed and unnecessary.
They argued that CSR should be at the discretion of each organization, emphasizing that it is an internal matter.
Additionally, they expressed concerns about the current multiplicity of taxes and the high operating expenses that manufacturers are already struggling with.
Olumide Osoba, member of the House of Representatives, recently introduced the Corporate Social Responsibility Bill 2023 to set high standards of corporate governance and ensure firms integrate long-term economic, environmental, and social aspects into their business strategies.
The bill includes provisions for establishing a department within the Federal Ministry of Budget and National Planning.
This department will be headed by a commissioner appointed by the president based on the budget minister’s recommendation.
The commissioner will coordinate the activities of agencies related to CSR and monitor compliance with the law.
For non-extractive companies with a net worth of N500 million or a net profit of N100 million in a financial year, the bill requires them to form a CSR committee consisting of three or more directors, one of whom must be an independent director. This committee will be responsible for the company’s CSR policy and ensure compliance.
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60 Hearty Cheers to Dr. Nneka Onyeali-Ikpe, GMD/CEO, Fidelity Bank
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