From January 1, 2026, Nigerian banks will begin charging a ₦50 stamp duty on electronic money transfers of ₦10,000 and above, marking a significant shift in how transfer levies are applied across the country. The Federal Inland Revenue Service (FIRS) has directed that this charge, previously known as the Electronic Money Transfer Levy (EMTL), will now be classified as a stamp duty and borne by the sender of the funds rather than the beneficiary.
Under the updated rules, any electronic transfer equal to or exceeding ₦10,000 will attract a flat ₦50 charge at the point of transfer. Financial institutions have started informing customers of the change as part of compliance with the Nigeria Tax Act (NTA) 2025.
According to notices circulated by several commercial banks, including United Bank for Africa (UBA), the levy will be applied to all qualifying transfers regardless of the type of account involved. However, the policy outlines several important exemptions: salary payments and intra-bank transfers where funds are moved between accounts within the same bank will not attract the stamp duty.
Officials have emphasized that this new stamp duty is separate from regular bank transfer fees, meaning customers will still pay any usual processing or service charges in addition to the ₦50 duty. Banks have also assured customers that the levy will be clearly disclosed at the point of transaction to ensure transparency.
Prior to this change, the ₦50 levy under the EMTL regime was typically deducted from the receiver’s account, a practice that drew criticism from bank customers who argued that beneficiaries should not bear the cost of funds they did not initiate. The new policy aligns the tax burden with the party initiating the transfer, which authorities say will help clarify responsibilities and reduce disputes.
The introduction of this new stamp duty comes as part of broader efforts by the government to formalize revenue collection on digital transactions and improve clarity in financial services. Digital money movement has grown in Nigeria as mobile banking and fintech adoption expand, making electronic transfers a core part of daily commerce and business operations.
Economists note that while the ₦50 stamp duty appears modest on individual transfers, the cumulative effect could be significant for frequent users of electronic transfers such as small business owners, payroll administrators, and active retail customers, who may see higher total costs over time. At a macroeconomic level, the shift could modestly boost non-oil revenue for the federal and sub-national governments without dampening overall digital payment adoption.
The Federal Inland Revenue Service expects the reform to streamline tax compliance and help integrate digital financial activity into the national revenue base. Banks are already integrating system adjustments ahead of the start date to ensure smooth implementation on January 1, 2026.
As the new law takes effect, customers are advised to review their bank’s communications and prepare for the updated billing format on their electronic transfer statements, ensuring a clear understanding of all associated costs.
