Reported by: Ijeoma G | Edited by: Gabriel Osa
Abuja, Nigeria — Starting January 1, 2026, banks across Nigeria will begin charging a ₦50 stamp duty on electronic transfers of ₦10,000 and above, with the cost to be borne by the sender, marking a notable shift in how electronic transaction levies are collected under the country’s updated tax regime. This development has significant implications for banking customers, businesses and digital payment platforms as the nation implements new taxation provisions introduced through recent reform laws.
Under the updated framework, the Electronic Money Transfer Levy (EMTL) — a flat, one-off charge previously applied to electronic receipts or transfers of ₦10,000 or more — has been reclassified as stamp duty as part of the Nigeria Tax Act, 2025 and related tax reforms. The change aligns with revisions to federal tax regulations aimed at modernising electronic payment taxation and expanding the scope of applicable digital financial transactions.
In notices sent to customers ahead of the policy’s rollout, major lenders including United Bank for Africa (UBA) confirmed that the new stamp duty will apply to transfers of ₦10,000 and above or the equivalent in other currencies, while certain movements of funds remain exempt. Salary payments and transfers between a customer’s own accounts within the same bank are not subject to the duty. Banks also highlighted that though they will collect the charge on behalf of the government, they do not retain the funds.
The most significant procedural change under the new regime is that the sender of the funds, rather than the recipient, will now pay the ₦50 stamp duty. Until now, the Electronic Money Transfer Levy was typically deducted from the receiver’s account, meaning the party receiving funds saw their balance reduced by the charge. The policy adjustment ensures that the beneficiary receives the full amount transferred, while the sender incurs the levy as part of the transaction cost.
Financial institutions have begun adjusting their systems and communicating these changes to customers ahead of the January launch date, emphasising transparency and compliance with Federal Inland Revenue Service (FIRS) regulations. Notices sent to account holders have outlined how the new duty will be collected and explained exemptions to help users plan their financial activities accordingly.
The policy’s implementation follows preliminary announcements last year by financial technology companies and banks indicating plans to adopt a similar stamp duty charge on transfers above ₦10,000. At the time, fintech platforms said the move was in compliance with FIRS directives, reflecting a broader effort to standardise the taxation of electronic financial transactions across both traditional banks and digital payment services.
While the introduction of the ₦50 stamp duty represents a relatively modest fee per individual transaction, analysts note that the cumulative impact may be significant for frequent users of electronic transfers, particularly small businesses, gig workers and individuals who regularly move funds digitally. Critics argue the charge adds to the cost of digital financial services at a time when many Nigerians are already grappling with rising living costs and economic pressures. Proponents contend that such levies are necessary to broaden the tax base and generate revenue to support public services and infrastructure.
Revenue authorities view the updated stamp duty regime as part of a broader strategy to modernise tax collections and adapt to the increasing digitalisation of the Nigerian economy. Electronic transfers have grown exponentially in recent years, driven by mobile banking, fintech innovations and a shift toward cashless payments. The new regulations seek to ensure that government revenue streams keep pace with these trends.
The Federal Inland Revenue Service, which administers the stamp duty collection, will continue to oversee compliance and remittance of collected duties to the appropriate government accounts. Under existing tax law provisions, the duty is payable on electronic transfers of ₦10,000 and above, with certain exemptions preserved for transfers between accounts held by the same individual at the same bank.
Some consumer advocates have suggested that the government should consider broader financial inclusion and equity measures alongside new revenue-raising policies, particularly for low-income earners who may be disproportionately affected by transaction costs. Others recommend enhanced public awareness campaigns to ensure that Nigerians understand the scope and application of the new stamp duties as they take effect.
As the calendar flips to 2026, banking customers and businesses across Nigeria will experience this shift in electronic payment charges firsthand. The policy’s practical impact will become clearer in the coming months, as stakeholders assess how the stamp duty influences the cost of digital transactions and how financial institutions adapt their services to accommodate the updated tax framework.
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