Banks in Nigeria will start charging senders a N50 stamp duty on electronic transfers of N10,000 and above from January 1, 2026, following the implementation of the Tax Act.
The stamp duty or Electronic Money Transfer Levy (EMTL) is a single, one-off charge of N50 on electronic receipt or transfer of money deposited in any commercial money bank or financial institution on any type of account on sums of N10,000 and above.
In an email sent to customers on Tuesday, United Bank for Africa (UBA) said the N50 electronic money transfer levy on transfers will now be referred to as stamp duty across all financial institutions. The communication clarified key details about the new policy.
“Stamp Duty applies to transactions of N10,000 and above (or the equivalent in other currencies),” the email stated. “Salary payments and intra-bank self-transfers are exempt from stamp duty. The sender now bears the Stamp Duty charge. Previously, this charge was deducted from the beneficiary/receiver”.
Banks clarified that the N50 stamp duty is separate from standard bank transfer fees and will be transparently displayed to customers at the point of transaction.
The introduction of the N50 stamp duty follows an announcement on September 7, 2024, by Nigerian financial technology firms (fintechs) to implement the same charge on transactions of N10,000 and above. Fintech companies said the move complies with Federal Inland Revenue Service (FIRS) regulations and applies to transfers into both personal and business accounts.
The shift in responsibility for the charge represents a notable change in Nigeria’s electronic payment landscape. Under the previous system, when a customer sent N10,000, the recipient received N9,950 after the N50 levy was deducted. Now, senders will pay the full charge upfront, meaning the recipient receives the complete amount sent.
According to reports, from 2026, sending N10,000 or more will cost between N75 and N100 per transfer, depending on the amount, when factoring in the stamp duty alongside existing bank transfer fees.
President Bola Tinubu defended the new tax laws in remarks made Tuesday, emphasizing that the reforms aim to overhaul Nigeria’s tax system rather than increase the burden on citizens. “The new tax laws, including those that took effect on June 26, 2025, and the remaining acts scheduled to commence on January 1, 2026, will continue as planned,” Tinubu said. “These reforms are a once-in-a-generation opportunity to build a fair, competitive, and robust fiscal foundation for our country”.
The stamp duty policy represents the government’s effort to modernize tax collection in line with the increasing shift toward digital financial transactions in Nigeria. Electronic banking has grown exponentially in recent years, with millions of Nigerians conducting daily transactions through mobile banking apps and other digital platforms.
UBA stated in its customer notice that it remains committed to transparency and to keeping customers informed about changes that may affect their banking transactions.
