CBN Update: Nigerian banks sends Important messages to customers

Nigerian banks have recently introduced a new policy mandating customers to present a valid Tax Clearance Certificate (TCC) when engaging in foreign currency transactions. This regulation aligns with the latest directives from federal and state governments, aiming to promote tax compliance as per the provisions of the Personal Income Tax Act. The objective of requiring a tax certificate for foreign exchange transactions is to ensure that individuals fulfill their tax obligations and contribute to the economic growth of the country.

According to ThisDay, the scope of this regulation encompasses a broad range of transactions, such as government loan applications, vehicle registration, foreign currency exchanges, certificate of occupancy issuance, government contract awards, and more. By implementing the TCC requirement, the government intends to encourage tax responsibility among residents and support the overall development of the nation.

To ensure customer awareness, Nigerian banks have proactively notified their customers about the newly imposed Tax Clearance Certificate (TCC) requirement through text messages and emails. Customers are now obligated to provide a valid TCC along with other necessary documentation for various foreign exchange transactions. These transactions include Personal Travel Allowance (PTA), Business Travel Allowance (BTA), payment of international school fees, medical expenses, and personal home remittances.

One of the banks, Wema, conveyed the following message to its customers:

“Please note that a valid tax clearance certificate is now essential for form A processes. Starting immediately, it is mandatory to include a valid tax clearance certificate along with all the currently uploaded documents on the portal for Form A requests (PTA/BTA, Tuition, Maintenance/Upkeep). This additional requirement has been implemented to ensure compliance with tax regulations and facilitate smoother processing of your requests.”

In a separate development, the Central Bank of Nigeria (CBN) has removed the NSPMC from the list of approved companies for printing cheques. The NSPMC, responsible for printing Nigeria’s currency, including the recently introduced N1000, N500, and N200 notes, will no longer be involved in cheque printing. The updated list reflects a significant reduction in the number of authorized cheque printers, decreasing from 14 in 2010 to only four.