Come the new year, Nigerians sending money electronically will feel a little pinch in their wallets. Starting January 1, 2026, banks across the country will deduct a ₦50 stamp duty from the sender's account for any transfer of ₦10,000 or more.
This change stems from the newly enacted Nigeria Tax Act 2025, which reclassifies the previous Electronic Money Transfer Levy (EMTL) as stamp duty.
Major banks like United Bank for Africa (UBA) and Access Bank have already notified customers about the upcoming rule. In emails and notices, UBA explained that the charge will apply uniformly across all financial institutions, and crucially, the burden now shifts to the person initiating the transfer.
Previously, under the EMTL introduced in 2020, this ₦50 fee was typically taken from the receiver's account, often leading to surprises and complaints when funds arrived short.President Bola Tinubu has defended the tax reforms, describing them as a "once-in-a-generation opportunity" to modernize Nigeria's fiscal system and boost non-oil revenue without overly burdening citizens.
The government aims to generate hundreds of billions from these collections to fund public needs.Exemptions include salary payments and transfers within the same bank account (intra-bank self-transfers). Transfers below ₦10,000 remain free of this duty. However, when added to existing bank transfer fees—such as ₦25 or ₦50 depending on the amount—sending larger sums could effectively double the cost for many users.
This shift is expected to make digital transactions slightly more expensive for everyday Nigerians who rely on quick bank apps and fintech platforms for payments. While the individual ₦50 hit seems small, it adds up across millions of daily transfers nationwide.
Businesses and frequent senders might feel the impact most, though receivers will now get the full amount without deductions.As the clock ticks toward 2026, customers are advised to stay updated through their banks for any further details on how this will roll out.
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