First City Monument Bank (FCMB) Limited has been appointed by the Fagge Local government area as its sole agent for tax collections using Point of Sales (POS) terminal . The Bank was selected to provide the service at the end of a due diligence process that involved other Banks having developed a more robust version of the customised POS machines that would be used for tax collections.
The initiative, which is aimed at reducing leakages in tax collections and encourages automation, tracking and real time reporting, will be flagged-off at Fagge Local Government Area Kano. The initiative is also in line with FCMB’s commitment to promoting the cashless economy system across the country.
The POS machines, which run on customized software, will be distributed to the tax collection staff of the Local Government. Each machine has a card tied to it that is preloaded with value at the beginning of each day. The LGA staff can then move around motor parks and markets to collect taxes. Upon collection, the staff will print out a temporary receipt, which the tax payee can exchange for a permanent receipt at the LGA office.
The value on the card reduces as cash is collected. Once value on the card is exhausted, the LGA staff visits the closest FCMB branch to offload the cash, reset the card and resume collections. The tax collections supervisor at the LGA has access to a real time reporting portal at the back office and so will be able to monitor activities on each POS machine.
Speaking on the development, FCMB’s Divisional Head, Transaction Banking, Mrs. Rolayo Akhigbe, said “the POS collections initiative for Fagge LGA is in line with FCMB’s focus on being a strategic partner in helping our customers grow their collections and payments and also build customized solutions where they may not yet exist”.
The customized POS for tax collection project is an initiative of the Growth and Employment in States (GEMS 3), which is an arm of the United Kingdom’s Department for International Development (DFID). The project, which is supported by the Federal Ministry of Trade and Investment, is designed to ride on the recently harmonised tax laws in Kano State as well as build and deliver a systematic framework that will aid business transactions in Nigeria. GEMS 3 recently concluded the tax harmonization law in Kano State and is going ahead to establish and encourage the use of POS (Point of Sales) for tax collections in other parts of the country.
FCMB is a member of FCMB Group Plc, which is one of the leading financial services institutions in Nigeria with subsidiaries that are market leaders in their respective segments. Having successfully transformed to a retail and commercial banking-led group, FCMB expects to continue to distinguish itself by delivering exceptional services, while enhancing the growth and achievement of personal and business aspirations through the offering of innovative, easy to use and helpful products and services.