New Tax Act Shifts Stamp Duty Burden to Senders on Electronic Transfers of ₦10,000 and Above
Nigerian banks will begin charging customers a ₦50 stamp duty on electronic transfers of ₦10,000 and above starting January 1, 2026, following the rollout of provisions under the newly enacted Tax Act.
The development was communicated to customers through official notices issued by several commercial banks ahead of the policy’s commencement.
Under the revised framework, the ₦50 charge, officially known as the Electronic Money Transfer Levy (EMTL), applies as a one-time fee on electronic receipts or transfers involving sums of ₦10,000 and above across all banks and financial institutions.
In a message sent to customers on Tuesday, United Bank for Africa (UBA) clarified that the EMTL will now be uniformly described as stamp duty across the banking system.
“Stamp Duty applies to transactions of ₦10,000 and above (or the equivalent in other currencies),” UBA stated in the notice.
The bank also highlighted a major change in how the charge is applied, noting that senders will now bear the ₦50 stamp duty, unlike the previous arrangement where the fee was deducted from the beneficiary’s account.
UBA further explained that salary payments and self-transfers within the same bank remain exempt from the charge.
Customers of Access Bank also received similar notifications confirming the new implementation structure.
Banks emphasised that the stamp duty is separate from regular transfer fees and will be clearly disclosed at the point of transaction, ensuring transparency for customers.
Transfers below ₦10,000 will not attract the charge, while transactions involving salary credits and intra-bank transfers, movements between accounts held within the same bank will continue to be excluded.
The revised approach replaces earlier percentage-based documentation charges, which banks say often led to confusion over the actual cost of transactions.
According to financial institutions, the adjustment is intended to simplify compliance, improve clarity, and help individuals and businesses understand applicable charges upfront.
Prior to this change, electronic transfers of ₦10,000 and above already attracted a ₦50 EMTL, but the fee was typically deducted from the receiver rather than the sender.
The stamp duty update comes as the Federal Government pushes ahead with the broader implementation of new tax laws.
President Bola Ahmed Tinubu recently reaffirmed that the tax reforms will take effect as scheduled from January 1, 2026, despite criticism from opposition figures and advocacy groups.
According to the President, the reforms are not designed to impose higher taxes but to streamline the system, improve fairness, and strengthen Nigeria’s fiscal framework.
“These reforms represent a once-in-a-generation opportunity to build a fair, competitive, and resilient tax system,” Tinubu said, calling on Nigerians to support the changes as they come into force.
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