Banks set to charge ₦50 stamp duty on transfers over ₦10,000 from January 1

Starting January 1, 2026, financial institutions in Nigeria will begin charging a ₦50 stamp duty on electronic transfers of ₦10,000 and above, in line with the provisions of the new Tax Act.

Notices informing customers of the upcoming change have been issued by Nigerian banks. The move is part of the government’s effort to implement the Tax Act and expand revenue collection through digital transactions.

The stamp duty or electronic money transfer levy (EMTL) is a single, one-off charge of ₦50 on electronic receipt or transfer of money deposited in any commercial money bank or financial institution on any type of account on sums of ₦10,000 and above.

In an email sent to customers on Tuesday, the United Bank for Africa (UBA) said the ₦50 EMTL on transfers will now be referred to as stamp duty across all financial institutions.

“Please note the following: Stamp Duty applies to transactions of N10,000 and above (or the equivalent in other currencies),” the email reads. 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.”

A similar notice was also sent by Access Bank to customers.

Banks clarified that this charge is separate from regular bank transfer fees and will be clearly disclosed to customers at the point of transaction.

The notice also stated that transfers below ₦10,000 are exempt from the stamp duty.

In addition, salary payments and intra-bank transfers transactions between accounts within the same bank will not attract the ₦50 charge.

This replaces the previous percentage-based charges, which often created uncertainty around the total cost of documentation.

Banks say the adjustment is aimed at simplifying compliance and making stamp duty charges easier for individuals and businesses to understand upfront.

Before the new policy, electronic transfers of ₦10,000 and above attracted a ₦50 EMTL, but the charge was typically deducted from the receiver’s account.

President Bola Tinubu on Sunday insisted that the implementation of the new tax laws will commence on January 1 as planned, despite criticisms from opposition and pressure groups.

In a statement, Tinubu said the tax laws are not designed to raise taxes, but rather to support a structural reset, drive harmonisation, and protect dignity while strengthening the social contract.

“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,” the president said on Tuesday.

“These reforms are a once-in-a-generation opportunity to build a fair, competitive, and robust fiscal foundation for our country.”

He called for support from all Nigerians as the tax laws would take effect in a few days.