The Federal Government of Nigeria ( the “FGN”) has recently introduced a new service charge (the “Service Charge”) on all payments by members of the public to its ministries, departments and agencies (“MDAs”) through the treasury single account ( the “TSA”) effective 1st November 2018.
The FGN decided to transfer the payment of the service charge to the members of the public after it incurred about N16,000,000,000 (sixteen billion Naira) as service charge on payments made to MDAs in the last two years. Consequently, from 1st November 2018, members of the public transacting with MDAs will bear the applicable service charge on all transcations.
From our recent transactions at the Corporate Affairs Commission and the Federal Inland Revenue Service, we note that the service charge levied is dependent on the value of each transaction and the mode of payment (whether online or over-the-counter ). Presently, there is no mode of confirming the exact sum to be paid as service charge on transactions with MDAs.
To simplify the computation of transaction fees with MDAs, we recommend that the FGN provide an ascertainable mode of calculating the service charge on each transaction.
The contents of this news alert are meant for the general information of our clients and friends and do not amount to legal advice. All enquiries on the subject may be made to: email@example.com
Adepetun Caxton-Martins Agbor & Segun
9th Floor, St. Nicholas House, Catholic Mission Street, Lagos Island, Lagos State, Nigeria.
Telephone: +234 (1) 462 2094; 462 2480; 740 6743 Fax: +234 (1) 461 3140