The Federal Inland Revenue Service (FIRS) has asked banks to deduct a 0.375 percent stamp duty charge on all mortgaged-backed loans and bonds.

Mortgage-backed loans are loans banks extend to individuals or entities to buy a home and repay the loan amount over time with interest.

Stamp duty is a levy charged on physical and electronic instruments or documents.

In an email sent by Access Bank to customers on Thursday, the new directive which took immediate effect, does not affect old loans with already agreed terms and conditions.

“We would like to inform you that the Federal Inland Revenue Service (FIRS) has directed all Nigerian banks to implement stamp duty on certain transactions that require duty payments such as contracts and legal mortgages,” Access Bank said.

“In compliance with this directive, we have taken measures to streamline the process to make transactions more convenient for you.

“To this end, a stamp duty charge of 0.375% will be applied to loans backed by legal mortgage, shares, debentures, or bonds. The charge will be applied on the value of the legal mortgage, shares, debentures or Bonds and remitted to the Federal Inland Revenue Services.

“However, all previously approved loans will remain unchanged and should be repaid in full as per the agreed terms and conditions.

“We are committed to providing you with exceptional service.”

The development follows FIRS’ effort to increase federal government revenue through taxes.

Tony Elumelu, group chairman of United Bank for Africa (UBA), says unemployment is one of the biggest challenges on the continent.

Elumelu spoke at the induction ceremony of 398 young Africans who were inducted after participating in a six-month graduate management accelerator programme (GMAP) in Lagos on May 2.

The graduates are from six African countries; Nigeria, Ghana, Cameroun, Kenya, Tanzania, and Zambia.

Speaking at the event, Elumelu congratulated all the graduates for completing the intense capacity-building programme and combining learning with on-the-job training experience, garnered while rotating across several departments and units in the bank.

The economist also highlighted the bank’s passion for youth empowerment in Africa to bridge the unemployment gap.

“For me, these young UBA Graduates are a testament to who we are: a truly pan-African Group, that invests in African talent. This milestone is more than just numbers,” Elumelu said.

“It signifies UBA’s commitment to youth empowerment. Unemployment is the greatest challenge we face – a tragic and cruel betrayal of a generation.

“We know governments alone cannot create all the jobs we need – so it is up to us, the African private sector, to partner with our government in improving lives and livelihoods.

“This is Africapitalism, and it is gratifying to see UBA play its part. UBA is dedicated to creating a positive impact, through the GMAP programme UBA is creating employment, boosting economic growth, and transforming lives across Africa.

“At UBA, identifying these young ones, bringing them to the centre, training them, equipping them for the future and the task ahead, not just for a career in UBA, but wherever they end up remains our passion, because this is how we play our role as a Pan-African bank, in helping to empower the next generation, which is the African youth. We are helping to create employment and this for us is our driving force.”

Earlier in his speech, Oliver Alawuba, UBA’s group managing director (GMD) and chief executive officer (CEO), commended the graduating class for their unwavering commitment and emphasised the programme’s role in cultivating the next generation of UBA leaders.

“Your dedication, resilience, and unwavering commitment have been nothing short of inspiring,” Alawuba said.

“Each of you has demonstrated the qualities of a true UBA ambassador, and today, we celebrate not just your achievements but also the collective strength of our UBA family.”

Modupe Akindele, UBA’s group head of human resources, said the bank remains committed to nurturing talent and leadership within the organisation.

Akindele said the GMAP programme, which marked its second graduation, will be a continuous initiative, as it culminates an intensive journey towards leadership excellence.

“Already, the programme has graduated over 1,100 graduates, that is about 700 in 2023 and now we have 398 graduates,” she said.

Akindele said the bank will continue to nurture the youth to their full potential.

A federal high court in Kano has issued an order restraining the National Electricity Regulatory Commission (NERC) and the Kano Electricity Distribution Company (KEDCO) from implementing the new electricity tariff for Band A consumers.

Ruling on an ex parte motion on Thursday, Abdullahi Liman, presiding judge, made an interim order restraining NERC and KEDCO from going ahead with the impending tariff pending the hearing and determination of the motion on notice filed before it.

The order also restrained the defendant from intimidating and threatening to disconnect the applicants’ electricity supply for non-acceptance of the new increased tariff.

The suit marked FHC/KN/CS/144/2024 was filed by Super Sack Company Limited and BBY Sacks Limited.

Others are Mama Sannu Industries Limited, Dala Foods Nigeria Limited, Tofa Textile Limited and Manufacturers Association Of Nigeria Limited (MAN).

The motion ex-parte was moved by Abubakar Mahmoud, counsel to the plaintiffs.

On April 3, NERC approved an increase in electricity tariff for customers under the Band A classification.

The commission said customers under the category, who receive 20 hours of electricity supply daily, would begin to pay N225 per kilowatt (kW), starting from April 3 — up from N66.

The sudden hike has since been criticised by the house of representatives and other stakeholders who have asked NERC to suspend the implementation of the new tariff.