The Nigerian Postal Service has joined the Federal Accounts Allocation Committee as one of the government revenue collecting agencies with regards to stamp duty
FOLLOWING the implementation of the Stamp Duty Act by the Central Bank of Nigeria, CBN, the Nigerian Postal Service, NIPOST, has been admitted into the federal accounts allocation committee as a revenue-generating agency of the country. By this admission, NIPOST has joined the elite club of government agencies that are members of the Federation Accounts Allocation Committee, FAAC.
The membership will enable NIPOST to attend the monthly FAAC meetings as well as post-mortem meetings where revenues accruing to the nation are analysed and shared among the three tiers of government. Agencies that are members of FAAC, which state governments attend, include the Nigerian National Petroleum Corporation, Federal Inland Revenue Service, Nigeria Customs Service and the Revenue Mobilisation Allocation and Fiscal Commission.
As a revenue-generating member of FAAC, NIPOST will also have the privilege of retaining a portion of the revenue accruing through stamp duties as the cost of collection, while the rest will go into the Federation Account. Monies accruing through the stamp duties are now being collected into the Stamp Duties Account opened at the CBN which is part of the Treasury Single Account.
To determine what percentage of the revenue to be retained by NIPOST as the cost of collection, a technical committee has been established and chaired by the Revenue Mobilisation, Allocation and Fiscal Commission. Membership of the committee is drawn from the CBN, NIPOST, RMAFC and Office of the Accountant-General of the Federation.
The federal government is expecting more than N2.5 trillion to be generated from stamp duties on financial services industry transactions per annum.
— Feb 17, 2016 @ 17:35 GMT