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Customers To Pay More For PoS Transactions

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Bank customers are to pay more for Point of Sale (PoS) transactions. This follows a Central Bank of Nigeria’s directive to banks to charge N50 Stamp Duty on individual transactions.

The directive on the Unbundling of Merchant Settlement Amounts was contained in the CBN circular to banks, processors and switches, titled: “Review of Process for Merchants Collections on Electronic Transactions”.

The new policy stipulates Stamp Duties Payment on individual transactions that occur on PoS, rather than previous plans where charges occurred on aggregate transactions.

The circular signed by CBN Director, Payments System Management Department, Sam Okojere, authorised banks to unbundle merchant settlement amounts and charge applicable taxes and duties on individual transactions as stipulated by regulators.

Merchant Service Charge was also reviewed downward from 0.75 per cent (capped at N1, 200) to 0.50 per cent (capped at N1, 000).

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The CBN and Nigeria Interbank Settlement System (NIBSS) are working closely, including setting emittance processes that ensure the stamp duty charges for PoS is collected.

In a NIBSS report titled: “Returns on Stamp Duty Collection for Merchant Transactions”, the payment agency said the new stamp duty payment plan is in line with the provision of the Stamp Duties Act and Federal Government Financial Regulation 2009.

The policy, it added, was aimed at ensuring strict adherence to the CBN guideline communication on the subject, collection and Remittance of Statutory Charges on receipts to Nigeria postal Service under the Stamp Duties Act dated 15th January 2016.

The procedural processing guide for stamp duty Charges for PoS, web merchant and all deposit money banks (DMBs) should download daily PoS/Web settlement report from their respective processors settlement file transfer portal.

Also, the PoS and web settlement processing officer shall ensure that stamp duties are correctly processed daily by downloading daily PoS/web transactions valued at N1,000 and above, noting the count of these transactions; multiply the count of these transactions by N50 and pass the corresponding debit/charge to the respective merchant accounts.

“The debit should be passed to the merchant accounts account at the point of PoS/ Web merchant Credit/Settlement to mitigate against the inability of the Deposit Money Banks (DMBs) to successfully secure these daily stamp duties charges and remit as expected. These charges are expected to be deposited into the already opened stamp duty collections account at the various DMBs and should form part of the weekly Stamp Duty rendition by the DMBs to NIBSS,” it added.

The NIBSS data showed the total volumes of PoS transactions for 2017 stood at 146.3 million which was worth N1.4 trillion; 285.9 million transactions in 2018 worth N2.3 trillion and 187.7 million for six months- January to June 2019 worth N1.4 trillion.

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Business

SON Certifies Innoson Motors, Issues MANCAP Certificate

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The Standards Organisation of Nigeria (SON) on Wednesday presented the Mandatory Conformity Assessment Programme (MANCAP) certification to Innoson Vehicles Manufacturing (IVM).

The certificate was presented to IVM Chairman/Chief Executive Officer, Dr Innocent Chukwuma, by SON Director-General, Osita Aboloma, in Nnewi in Anambra State.

Aboloma noted that the award shows that the company passed the rigorous process of inspections and quality assurance in the last five years.

He added that it also demonstrated compliance with the relevant product standards.

“With the award of MANCAP’s certificate to Innoson brand of vehicles, we are demonstrating how standardisation and conformity to standards offer strategic opportunities for increased efficiency.

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“We are, in effect, saying that Innoson brand is fit to be used in Nigeria and beyond,” Aboloma said.

In his Goodwill message, the National President of Nigerian Association of Commerce, Industry, Mines and Agriculture (NACCIMA), Hajiya Saratu Iya Aliyu and who was represented its National Vice President, Mr Humphrey Ngonadi noted that for Innoson Vehicles to receive the Standard Organization of Nigeria (SON) Mandatory Conformity Assessment Programme (MANCAP) means that it met the relevant Nigerian Industrial Standards (NIS) and it is a “confirmation of the capacity of our industry”.

The NACCIMA President assured Innoson Vehicles of the continuous support of NACCIMA to his company.

Giving his remarks, the Innoson Vehicle Boss, Chief Chukwuma gave the assurance that Innoson Vehicles will continue to employ international best practices in the production of its vehicles so that they can compare favorably in terms of durability, fuel economy and safety.

He stated further that the company is now producing affordable cars that an average Nigerian worker can purchase easily.

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Union Bank Sells UK Subsidiary

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Union Bank of Nigeria (UBN) Plc has entered a share sale and purchase agreement to divest its 100 per cent equity stake in its United Kingdom (UK) subsidiary, Union Bank UK (UBUK) Plc.

In a regulatory filing just released at the Nigerian Stock Exchange (NSE), the board of Union Bank stated that the sale was in line with the bank’s strategy to geographically streamline its business operations to focus on growth opportunities in Nigeria.

According to the bank, following a competitive bid process, MBU BidCo Limited (MBU), an acquisition vehicle wholly owned by MBU Capital Limited (MBU Capital), was selected as the preferred bidder. The completion of the sale is however still subject to regulatory approvals from the relevant regulatory authorities in Nigeria and the UK.

MBU Capital is an investment management firm founded in 2013 and based in Mayfair, London. MBU Capital has active interests in financial services, healthcare, education, real estate and technology. MBU Capital (UK) LLP is authorised and regulated by the Financial Conduct Authority.

Chief Executive Officer, Union Bank of Nigeria (UBN) Plc, Emeka Emuwa said the bank decided that as the banking landscape shifts towards digital and agency banking to drive financial inclusion, the Nigerian market presents robust long-term opportunities for it.

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He pointed out that the divestment allows the bank to channel its focus and capital towards mining the Nigerian opportunities fully.

“Through the sale, we are better positioned to deliver greater value to the organisation and its stakeholders as well as continue to build the future of banking in Nigeria. The terms of the sale of UBUK delivers substantial value to our shareholders, while also entrusting its customers and trading partners to a high-quality financial services institution which will work with existing management to deliver a stronger and more profitable entity,” Emuwa said.

Founder and Chief Executive Officer, MBU Capital, Mohammed Iqbal said the investment group was delighted with the acquisition, describing it as a huge opportunity to build on UBUK’s strengths in international markets to create a new-style bank which is focused on the needs of UK and international SMEs and entrepreneurs.

According to him, many customers are seeking a bank which truly understands the needs of entrepreneurial, fast-growing businesses.

“We believe that our acquisition and vision for UBUK offers the potential for significant growth for the bank. We look forward to working with our new colleagues at UBUK to continue to service the needs of its clients. We also look forward to sustaining and deepening relationships with UBUK’s existing trading partners,” Iqbal said.

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Peace Mass Transit Launches 50 Brand New Buses [PHOTOS]

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Peace Mass Transit (PMT) Limited, the leading mini-bus transport company in the country, has readied a total of 50 brand new buses for injection into its fleet.

The buses are all products of newly established PMT Vehicle Assembly Plant, located within the Emene Industrial Layout headquarters of the company.

PMT Executive Director in charge of operations, Enete Ifeanyi Henry Clinton disclosed that the new buses would be assigned to drivers and has already being deployed to all the PMT depots across the country.

Peace Mass Transit has an active fleet of 4,000 buses with at least 2,000 on the road daily. It regularly freshens up the fleet to meet customer expectations and also maintain its market leadership.

PMT Founder and Chief Executive Officer, Chief Samuel Maduka Onyishi, maintains he runs the company as a “ministry” and not strictly as a business, and would, always do what it takes to keep the company as an industry leader, at all times.

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“The brand new buses we are injecting cost almost N 17 million per unit, but I have a pact with both God and our huge clientele to offer the best possible services at all, times,” he stated after inspecting the newly assembled buses on Monday.

Customers are encouraged to book online through www.pmt.ng, or visit our website –peacegroup.ng

Chief Onyishi, Member of the Order of the Niger (MON) expressed gratitude to God and also to Nigerians who have trusted the brand (PMT) for over 20years. He urged them to keep their faith in the company and promised to always deliver beyond their expectations.

“Our customers deserve even more and no less,” he added. “We will never take their patronage for granted because they have brought us this far.”

He reiterated that the introduction of the new buses was a “strategic fleet rejig” and in no way signified or suggested older vehicles had any maintenance issues or were about to be discarded.

“Our maintenance culture is top-notch and the team is manned by technicians and engineers some of whom were trained abroad.

All PMT vehicle plying the highway, are regularly checked for maintenance, to avoid breakdown. All our vehicles run on strong quality tires which are replaced upon attainment of a certain mileage.’’

He reiterated that the introduction of the new buses was a “strategic fleet rejig” and in no way signified or suggested older vehicles had any maintenance issues or were about to be discarded the chairman concluded.

Special, distinguishing features of the new buses include, but not limited to EBS/ABS brake system combined, digital dashboard, factory-fitted speed limiter, on-board TV, and DVC player for customers’ non-stop pleasure.

According to the Executive Director, Ifeanyi, ‘’Multiple charging points and luggage controls are being provided, with all the buses fully air-conditioned, which includes protective seat belts for all passengers.

Free Wi-Fi services for passengers are still in the works.

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