The Central Bank of Nigeria (CBN) has clarified that the popular N50 stamp duty charge seen on many bank transaction alerts is not a fee imposed by banks but a tax approved by the federal government.
CBN Governor Olayemi Cardoso made the clarification on Tuesday after the conclusion of the Monetary Policy Committee (MPC) meeting held in Abuja.
According to Cardoso, banks are only responsible for collecting the charge and transferring it to the appropriate government authorities. He explained that the levy comes from tax agencies and not from the banking sector itself.
He said many Nigerians wrongly believe the money goes directly to banks, whereas financial institutions only serve as channels for the collection process.
The governor also admitted that customers are becoming increasingly frustrated by the large number of debit alerts they receive from banks. In many cases, a single transaction can generate multiple notifications, making it difficult for customers to understand what each deduction represents.
Cardoso described the situation as confusing and said the central bank is already reviewing ways to improve transaction notifications for bank customers. One of the proposed solutions is the introduction of a single, detailed alert that clearly explains all charges connected to a transaction instead of sending separate messages.
He noted that the move is part of broader efforts to improve transparency within Nigeria’s banking system and reduce customer complaints about unexplained deductions.
To further address the issue, the CBN has created a standing committee that will focus on resolving recurring consumer complaints in the banking sector. The committee is expected to investigate concerns relating to hidden charges, transaction disputes, and poor communication between banks and customers.
The clarification from the apex bank came shortly after the Monetary Policy Committee concluded its 305th meeting held between May 19 and May 20, 2026.
At the meeting, the MPC decided to retain the Monetary Policy Rate (MPR) at 26.5 percent. Other key monetary policy parameters were also left unchanged as the central bank continues efforts to manage inflation and stabilize the economy.
Economic analysts believe the decision to maintain the current interest rate reflects the CBN’s cautious approach toward inflationary pressures and exchange rate stability.
The stamp duty charge has remained a controversial issue among bank customers for years, with many Nigerians repeatedly questioning why deductions are made on electronic transfers and deposits. The latest explanation from the CBN is expected to provide more clarity, although public discussions around banking charges are likely to continue.
The apex bank also stressed the importance of financial institutions improving communication with customers to reduce misunderstandings and build trust in the banking system.
