NBA KADUNA UNVEILS PAYMENT PORTAL FOR DUES

The Nigerian Bar Association (NBA), Kaduna Branch has joined the league of digital branches with the introduction of online payment system for its Branch and Welfare Dues. Following in the footsteps of the national body, the branch has deployed the Paystack payment portal for payment of its dues.

In a press release signed by the Branch Financial Secretary, Diane Odey, it was stated that Branch members can now pay for their Branch Dues using the web link, www.nbakaduna.org/branch-dues while the Welfare Dues can be paid via www.nbakaduna.org/welfare-dues.

While the Branch would adopt the hybrid method by also receiving payment via the Branch Bank Account, Odey further explained that by 2023, payment for the Branch & Welfare Dues will be done only via the online platform.

Speaking on the development, the Branch Chairman, Mr. M. T. Mohammed stated that “NBA Kaduna is one of the few Branches of the NBA that has fully deployed online payment services for its members. We have used it to collect payments for our Law Week and Bar Dinner in the past few years. We are encouraged to continue to use the platform provided by Paystack to ease the payment of Branch and Welfare Dues for our Members.”

According to a statement by the Branch Publicity Secretary, Oguguo Anoruo-Enujekwu, the Chairman noted that online payment also enables the branch to keep proper and accurate records of its financial members. He urged members to take advantage of the online payment method.

It is recalled that the NBA National Executive Committee (NBA-NEC) had at its latest quarterly meeting approved exclusive payment of Bar Practising Fee (BPF) through the Paystack portal.

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BPF: NBA REVERSES SELF, CANCELS TRANSACTION CHARGES

The Nigerian Bar Association (NBA) has cancelled the transaction charges payable by lawyers for the annual Bar Practising Fee (BPF).

A statement personally signed by NBA President, Mr. Olumide Akpata, noted that “the leadership of the NBA has resolved that the Association will, as was the case with AGC 2021, bear the transaction charges associated with the payment of 2022 BPF.”

It stated that the controversy generated by the high transaction charges by PAYSTACK was due to a communication gap between the NBA leadership and the service provider, adding that “while the NBA team expected that the 2021 AGC reduced fee and pass-through arrangement would hold sway, the Paystack team, having not received any clear directive in this regard, reverted to the default position which is to debit transaction charges from the purchaser, in this case, members of the Association.”

Akpata reiterated that there was no revenue sharing arrangement between the association and PAYSTACK, adding that “no portion of the transaction fees charged by Paystack is shared with or remitted to the NBA, or any of its officers or members of staff.”

The NBA leadership also said that while alternative payment platforms could be desirable, “this new arrangement of moving BPF payments online only would help the NBA improve its service offering to members, restore confidence in our electoral process and enhance accurate data gathering. The NBA will therefore continue with the online only payment policy.”

It is recalled that former NBA Lagos Branch Treasurer and erstwhile Financial Secretary, Mr. Phillip Njeteneh had in an article in CITY LAWYER chided NBA for the high charges, wondering whether the association retains a portion of the charges.

Below is the full text of Akpata’s statement.

My Dear Colleagues,

Compliments of the season and best wishes for 2022.

Since 1st January 2022 when we fully transitioned to paying our annual Bar Practising Fees (“BPF”) online, there have been numerous complaints and commentaries by some of our colleagues on a number of points. This is certainly not unexpected because transitioning to a new process, no matter how laudable or desirable, typically comes with some challenges, analyses, pushback, and initial resistance. However, as mentioned in one of our most recent notices to you, the NBA is, as it should be, open to considering all views aimed at improving our processes, and generally advancing the interests of our members and the profession. To this end, our publicity team has been responding to many of the issues raised so far and I have thought it appropriate to add to our existing responses as follows:

1. Engagement of Paystack – Paystack has been the NBA Service Provider since 2019, before this administration came on board in August 2020. A fair and transparent process for engaging them was concluded at the relevant time and this administration has continued to utilise their services, which have been quite satisfactory. We utilised Paystack’s services for processing 2021 BPF (online) payments under a hybrid arrangement and also for the 2021 Annual General Conference (AGC) registration.

2. Fees charged by Paystack – with regard to payments to Paystack for their services, in 2020, those who paid their BPF online also paid a transaction fee to Paystack which amounted to circa 2% of the transaction amount. For example, BPF of N25,000 attracted about N482.24 as transaction fee. Similarly, in 2021 (under this administration), those who opted to pay their BPF online paid the same transaction fee to Paystack. This is consistent with the contract signed with Paystack when they were engaged.

3. Bearing Paystack fees for members – with respect to the 2021 AGC for which registration was online only, the NBA was able to work out an arrangement whereby the Paystack transaction fee was not only reduced but was borne entirely by the NBA. As such, all those who registered for the 2021 AGC did not have to bear any direct transaction cost for paying online. Coming now to BPF 2022, which is to be paid online only, while the NBA team expected that the 2021 AGC reduced fee and pass-through arrangement would hold sway, the Paystack team, having not received any clear directive in this regard, reverted to the default position which is to debit transaction charges from the purchaser, in this case, members of the Association.

4. Transaction charges for BPF 2022 – the NBA has been able to negotiate a revised fee of 1.3% with Paystack for their services relating to the 2022 BPF payments. Considering that this year would be the first time when members will be required to pay their BPF online only, the leadership of the NBA has resolved that the Association will, as was the case with AGC 2021, bear the transaction charges associated with the payment of 2022 BPF.

5. Who pays the transaction charges in the future? – Going forward, it will be necessary for our Association to come to terms with the fact that online payment for goods and services has now become the norm, and those who provide the platforms through which we are able to make these payments, do so for a fee. Therefore, at the earliest opportunity, I will table a request before the NBA-NEC to take a view or make a determination on whether such future payments should continue to be borne by the Association or by the members directly.

6. Revenue Sharing with Paystack – the NBA reiterates that no portion of the transaction fees charged by Paystack is shared with or remitted to the NBA, or any of its officers or members of staff. All fees charged by them for the service(s) that they render go directly and solely to them, and the BPF paid by members is channeled by Paystack directly into the Supreme Court of Nigeria BPF Account No: 0000976716 which is held with Access Bank. The insinuations, and indeed allegations, in some quarters, to the effect that there are underhanded payments and kickbacks with respect to the transaction fees are most unfortunate.

7. Increase in BPF – to be sure, payment of transaction charges is incidental to making online payments (whether they be BPF, taxes, statutory payments, bank transfers, etc.). Such payment is not an increase in BPF as has been suggested by some of our members.

8. A dual payment system – there have been suggestions that the NBA should allow members the option of either paying their BPF online or making cash deposits at the bank. Interestingly, such hybrid system of BPF payment has existed at the NBA for at least two years, but it has proven to be inefficient to a large extent. Experience has shown that this arrangement has affected our record keeping and the integrity of some of our processes including accurate database of lawyers, NBA voters register, easy processing of stamp and seal, etc. and we are committed to eliminating these inefficiencies. So, besides the convenience for our members and the fact that electronic payment is desirable and consistent with global trends, this new arrangement of moving BPF payments online only would help the NBA improve its service offering to members, restore confidence in our electoral process and enhance accurate data gathering. The NBA will therefore continue with the online only payment policy.

9. Alternative service providers – there have been requests for the NBA to engage alternative or multiple service providers so as to allow our members choose the platform on which to make payments. While we remain satisfied with the current service offering, we will certainly consider this request in due course. The first quarter of each year is the peak period for payment of BPF by our members and we have been advised by our technical team that any consideration of alternatives to the existing platform will be best done when the high traffic abates in order not to disrupt the smooth operation of the system.

I thank you for your attention.

Sincerely,

OLUMIDE AKPATA
President
Nigerian Bar Association

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NBA ADMITS BPF CHARGES ARE HIGH, SAYS LAWYERS WILL GET REFUND

The Nigerian Bar Association (NBA) has admitted that the charges being levied by Paystack for its services on the dedicated BPF Online Payment Platform “are relatively on the high side.”

The Olumide Akpata-led NBA has also vowed to engage the service provider for a downward review of the charges which currently range between N177 to a maximum of N863 for SANs and Benchers, adding that lawyers who already paid the high charges would be refunded.

In a statement by the NBA National Publicity Secretary, Dr. Rapulu Nduka, the bar association indicated that Paystack may have hiked the charges without its consent, noting that “It was our understanding that the fees chargeable on the payment of 2022 BPF would not be different from what was paid last year.”

The association stated that it has started engaging Paystack for a downward review of the charges and that once a resolution is reached, “the charges will be reduced and those lawyers who already paid the higher sum will receive a pro rata refund of the charges paid.”

It is recalled that former NBA Lagos Branch Treasurer and erstwhile Financial Secretary, Mr. Phillip Njeteneh had in an article in CITY LAWYER chided NBA for the high charges, wondering whether the association retains a portion of the charges.

Below is the full text of the statement made available to CITY LAWYER.

BAR PRACTISING FEES – NBA’S POSITION AND NEXT STEPS ON TRANSACTION COSTS ASSOCIATED WITH ONLINE PAYMENTS

Dear Colleagues,

The leadership of the Nigerian Bar Association (NBA) has read several commentaries, and also received numerous calls, regarding the costs charged by NBA’s long-standing service provider (Paystack) for settling transactions on the BPF Online Payment Platform.

To be sure, the common theme of the complaints is that the transaction costs are exorbitant and need to be reviewed downwards. We have taken on board all the complaints and now respond as follows:

1. The leadership of the NBA is open to all criticisms aimed at advancing our common cause, improving our processes/systems, protecting the interests of our members and overall, moving our profession forward. The NBA therefore welcomes and appreciates the concerns that have, so far, been expressed on this issue.

2. For the avoidance of doubt, there has been no increase in the amount payable as BPF. The transaction costs (ranging from a floor of N177 to a maximum of N863 for SANs and Benchers) that members are charged when they pay their BPF online are wholly and exclusively due to Paystack for its services. No portion of those costs are shared with, or remitted to, the NBA.

3. Indeed, upon our review of the fees charged by Paystack for similar transactions in the past, such as payment of 2021 BPF and payment of fees for the 2021 NBA-AGC, the leadership of the NBA agrees that the current charges are relatively on the high side. It was our understanding that the fees chargeable on the payment of 2022 BPF would not be different from what was paid last year.

4. On the basis of the above, the NBA has started engaging with Paystack to review the charges downwards. This engagement has however been impacted by the public holidays albeit we expect that the issue will be resolved shortly.

5. Once this happens, the charges will be reduced and those lawyers who already paid the higher sum will receive a pro rata refund of the charges paid.

We thank you for your understanding.

Dr. Rapulu Nduka
Publicity Secretary,
Nigerian Bar Association

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