Starting January 1, 2026, Nigerian banks will begin charging a ₦50 stamp duty fee on electronic money transfers of ₦10,000 and above, marking a major change in how transfer levies are applied under the new Nigeria Tax Act (NTA) 2025.
Under the revised policy, the one-off ₦50 stamp duty, previously known as the Electronic Money Transfer Levy (EMTL), will now be borne by the sender of the funds, rather than the recipient.
“Please note the following: Stamp Duty applies to transactions of ₦10,000 and above (or the equivalent in other currencies),” United Bank for Africa (UBA) said in a notice to customers, clarifying that the cost will now fall on the sender.
What Has Changed With the New Tax Law
The move aligns with provisions in the Nigeria Tax Act 2025, which officially replaces the traditional EMTL with a stamp duty regime for electronic transfers. Previously, the ₦50 levy was deducted from the receiver’s account, but the new structure shifts that responsibility to the sender, who initiates the qualifying transfer.
Transactions below ₦10,000 remain exempt, and many banks have confirmed to customers that certain transfers, such as salary payments and intra-bank self-transfers, are also exempt from the charge.
Impact for Individuals and MSMEs
For everyday users and micro, small and medium enterprises (MSMEs), this change means:
- Higher cost for sending funds: Businesses and customers transferring amounts of ₦10,000 or more will now pay an extra ₦50 per transaction in addition to regular bank fees.
- No deduction on receipt: Recipients will receive the full amount without having any fee deducted, which could be beneficial for businesses receiving customer payments.
- Budgeting for transaction costs: MSMEs that rely on frequent transfers, such as paying suppliers, staff, or collecting digital sales revenue, will need to factor the stamp duty into their cash-flow planning.
While this adds a minor per-transaction cost, it also simplifies who bears the charge and removes the unpredictability of fees being deducted after receipt.
