NewStats: 3,259,755 , 8,170,830 topics. Date: Sunday, 25 May 2025 at 10:22 PM 6v273d

Merchants in some of Nigeria’s largest retail outlets have started including the N50 stamp duty in their POS machines automatically. This follows the widespread adoption of the N50 charge on customers seeking to pay their bills using debit cards.

Over the weekend, NAIRAMETRICS visited some retail outlets and confirmed that POS machines now have an upgrade that automatically charges N50 for transactions above N1,000. Some merchant operators explained that the move was necessary to avoid the occasional backlash that comes with seeking customer consents before adding the charge manually during POS payments.

Most filling stations in Lagos, including large supermarkets such as SPAR, Grand Square already charge their customers the stamp duties of N50 per completed set of transactions paid using the POS. SPAR already automatically includes the N50 stamp duty in their POS, charging the customers directly without having to inform them. Unsuspecting customers may not even notice the charge, as it appears towards the end of the bill.

Last September, a Central Bank of Nigeria (CBN) circular mandated merchants to remit the statutory N50 charge on every POS transaction deposited into merchant s provided it exceeds N1,000. NAIRAMETRICS first reported the implication of the circular.

In the new circular, the CBN revealed that banks would unbundle merchant settlement amounts and charge applicable taxes and duties on individual transactions as stipulated by regulations. This was essentially a tax on each transaction done via POS channels. It also instructed that merchant service charge has been reviewed downwards from 0.75% capped at N1,200, to 0.5% capped at N1000.

Since the circular was ed, most merchants have had no choice but to charge back the tax on their customers, believing that the convenience of a POS transaction is for the customers and not them. Some merchants, who spoke to us on condition of anonymity, also explained that the attendant cost of the tax was high for most of them to bear and this is the reason they it to the customers.

A supermarket owner complained bitterly that they would have ended up paying over N2 million monthly on stamp duty tax emanating from POS transactions alone. Petrol station owners also explained to our analysts that there was no way they could bear the costs, considering the volume of transactions they handle daily and how thin the margins are for them.

What this means: The financial cost of stamp duties collected since the circular was released is yet to be released officially, but analysts believe it could run into billions. However, if this tax continues, it could have negative consequences for the CBN’s cashless policy plans.

- A cross-section of Nigerians on social media insist on paying cash rather than giving up N50, even if it means withdrawing cash from the ATM.

- Whilst most of the merchants report that POS transactions haven’t been severely impacted, they have also seen a rise in payment via cash by most customers.

- Most customers are unaware of the charge and may not react as negatively if their consent was sought before charging them the tax. This could perhaps be the norm as more Payment Service Providers (PTSP) will upgrade their POS machines to allow merchants automatically charge the N50 stamp duty tax from their customers.

- If the apex bank discourages cash-based transactions, and at the same time imposes multiple charges to electronic-based transactions, it may be running the risk of policy inconsistency, capable of aggravating the already tensed ease of doing business environment in the country.

- NAIRAMETRICS, however, understands that the government is also monitoring the impact of the charge and might not reverse the circular, especially if Nigerians get used to it. A government official with knowledge of the matter informed NAIRAMETRICS that there are current moves by the Ministry of Finance to soften the effect of the tax. According to the source, who also pleaded anonymity, the tax will not be rescinded, but the transaction limit on POS might be increased.

https://nairametrics.com/2019/11/25/merchants-upgrade-pos-machines-to-automatically-charge-n50-stamp-duty/

I don't where my once beloved naija is heading to cos the rate of poverty is bad bwari is full of empty promises

It is unacceptable, mbanu

What happened to the cashless policy's ?

Hmmmm.. The whole country seems to legit be on its head. Even the Israelites had better in Egypt

Was, great one

Cbn puts charges on cash deposit.
Zombie: Government want to encourage cashless policy.

Few months later Cbn puts 50 naira charges on every transaction on POS.
Zombie: You citizens want to enjoy infrastructures and don't want pay tax.

Confused idiots. Awon werey.

They want to cripple this POS business sha

Is it not meant to be paid by merchants and not customers.

You see this thing called sense ehnnn?? We go get am by force.

You know the worst part??

Whether you voted APC or PDP or AAC or SDP or ETC, that N50 configured on the POS machine must affect you. The machine doesn't segregate or differentiate between party faithfuls.



Las Las everyone go de alright

Madness

Sanusi lamido stil remains d best CBN Governor....

This emefiele na rogue....


He jus de make money for banks

I noticed it yesterday.

Tight merchants...so none of them could absorb the N50 on behalf of their customer

Smh the big ones could have easily put in place policies for minimum transactions....all transactions above 10,000 then the n50 should be on us

What positive thing will this current CBN Governor be ed for?

dominique:
They want to cripple this POS business sha

Swears because once people notice this they’ll stop patronizing pos

Are we still adopting cashless policy, when I will incur charges

Very good! Nigerians envy the likes of US, UK, , etc, but they're not ready to do half of what those countries citizens did or are doing that make their country so prosperous - a big irony! What's ₦50 that educated youths have been complaining about for months now? Do you think if French people don't pay taxes, VAT, etc, they'll be where they are today? In most developed countries, almost everything you buy or sell is taxed, so why the fuss here over a mere N50?

Bluffly:

Oga, the countries you are talking about are seeing what they are paying for, but Nigerians are not. The countries you are talking about did not wait to tax citizens before putting up infrastructures as they sought out a way and they then maintain the standard with tax which can further develop other aspects but here government go for loan, they will embezzle it and keep increasing tax left and right and yet embezzle it. So is it the fault of the citizens or those in political leadership capacity.

firfinch:
People are resistant to the policy because there is no ability. We have heard of SureP when pump price was increased with all the promises. If people are sure the revenue generated will be put to effective use where everybody and feel and enjoy it, they will not complain

simple250:

The countries you just mentioned do they have steady power supply ?

Govt in some way subsidize power or how do you explain some people paying a paltry N2000 (less than $10) per month and getting an average of 12 hours per day?

maxiuc:
at least those countries you mentioned use theirs for developments not embezzlement
We complain here in Nigeria because we don't get the desired services despite making sacrifice

When you pay less than N40k per year in federal universities, it's the taxes that were responsible for that ridiculously low tuition fee.

pronto1:
KODENI DAFUN E... In this harsh country people living below 200naira a day, still corruption it's at it's peak in Abuja... MONI KONI DA FUN E LEKAN SI

There's nobody who has money to go buy things at the supermarket with debit card who lives on less than ₦200 per day!

MOSICATED5:
What positive thing will this current CBN Governor be ed for?

Buhari’s Nigeria- A somersaulting ride!

nwakibie3:
Merchants in some of Nigeria’s largest retail outlets have started including the N50 stamp duty in their POS machines automatically. This follows the widespread adoption of the N50 charge on customers seeking to pay their bills using debit cards.

Over the weekend, NAIRAMETRICS visited some retail outlets and confirmed that POS machines now have an upgrade that automatically charges N50 for transactions above N1,000. Some merchant operators explained that the move was necessary to avoid the occasional backlash that comes with seeking customer consents before adding the charge manually during POS payments.

Most filling stations in Lagos, including large supermarkets such as SPAR, Grand Square already charge their customers the stamp duties of N50 per completed set of transactions paid using the POS. SPAR already automatically includes the N50 stamp duty in their POS, charging the customers directly without having to inform them. Unsuspecting customers may not even notice the charge, as it appears towards the end of the bill.

Last September, a Central Bank of Nigeria (CBN) circular mandated merchants to remit the statutory N50 charge on every POS transaction deposited into merchant s provided it exceeds N1,000. NAIRAMETRICS first reported the implication of the circular.

In the new circular, the CBN revealed that banks would unbundle merchant settlement amounts and charge applicable taxes and duties on individual transactions as stipulated by regulations. This was essentially a tax on each transaction done via POS channels. It also instructed that merchant service charge has been reviewed downwards from 0.75% capped at N1,200, to 0.5% capped at N1000.

Since the circular was ed, most merchants have had no choice but to charge back the tax on their customers, believing that the convenience of a POS transaction is for the customers and not them. Some merchants, who spoke to us on condition of anonymity, also explained that the attendant cost of the tax was high for most of them to bear and this is the reason they it to the customers.

A supermarket owner complained bitterly that they would have ended up paying over N2 million monthly on stamp duty tax emanating from POS transactions alone. Petrol station owners also explained to our analysts that there was no way they could bear the costs, considering the volume of transactions they handle daily and how thin the margins are for them.

What this means: The financial cost of stamp duties collected since the circular was released is yet to be released officially, but analysts believe it could run into billions. However, if this tax continues, it could have negative consequences for the CBN’s cashless policy plans.

- A cross-section of Nigerians on social media insist on paying cash rather than giving up N50, even if it means withdrawing cash from the ATM.

- Whilst most of the merchants report that POS transactions haven’t been severely impacted, they have also seen a rise in payment via cash by most customers.

- Most customers are unaware of the charge and may not react as negatively if their consent was sought before charging them the tax. This could perhaps be the norm as more Payment Service Providers (PTSP) will upgrade their POS machines to allow merchants automatically charge the N50 stamp duty tax from their customers.

- If the apex bank discourages cash-based transactions, and at the same time imposes multiple charges to electronic-based transactions, it may be running the risk of policy inconsistency, capable of aggravating the already tensed ease of doing business environment in the country.

- NAIRAMETRICS, however, understands that the government is also monitoring the impact of the charge and might not reverse the circular, especially if Nigerians get used to it. A government official with knowledge of the matter informed NAIRAMETRICS that there are current moves by the Ministry of Finance to soften the effect of the tax. According to the source, who also pleaded anonymity, the tax will not be rescinded, but the transaction limit on POS might be increased.

https://nairametrics.com/2019/11/25/merchants-upgrade-pos-machines-to-automatically-charge-n50-stamp-duty/

Its really pathetic the situation this nation has found herself under this present dispensation

Las las we go survive. Na next life we go fight for Naija

See Me, See Trouble

Sense

Even for 1000naira you will pay merchant fee of 50..are we merchants or customers.??customers absorbing merchant fees for merchants
..later 1000naira withdrawal them go still charge you 100naira.

WILLD:
It is unacceptable, mbanu

May thunder strike cow

Buhari was a mistake , a mistake I hope Nigeria can recover from ...These are times to look toward God for Provision

Our dear country is finished

Y’all start paying with cash, bunch of criminals these banks I tell ya

Buhari sef