Nigerian banks will begin charging a N50 stamp duty on electronic transfers of N10,000 and above from January 1, 2026, following the implementation of provisions in the Tax Act that govern electronic money transfers. The charge will apply across commercial banks and other financial institutions, according to customer notifications sent out this week.

The levy, formally known as the electronic money transfer levy, or EMTL, is a single, flat fee of N50 applied to qualifying electronic receipts or transfers into accounts held with banks or other regulated financial institutions. The charge applies regardless of whether the account is personal or business, provided the transaction amount meets or exceeds the N10,000 threshold.

Banks notify customers of changes

In an email sent to customers on Tuesday, United Bank for Africa, or UBA, confirmed that the N50 EMTL on transfers will now be referred to as stamp duty across all financial institutions. According to the bank, the change aligns with regulatory guidance and standardises how the charge is described within the banking system.

“Please note the following: Stamp Duty applies to transactions of N10,000 and above, or the equivalent in other currencies,” the email stated. UBA added that salary payments and intra-bank self-transfers remain exempt from the charge.

A key change highlighted in the notification is who bears the cost of the levy. According to UBA, the sender of the funds will now pay the N50 stamp duty. Previously, the charge was deducted from the beneficiary or receiving account. The bank said the update reflects current regulatory interpretation and implementation of the law.

UBA also said it remains committed to transparency and to keeping customers informed about changes that may affect their banking transactions.

Background to the stamp duty policy

Stamp duty on electronic transactions is not new in Nigeria, but its scope and enforcement have evolved over time. The Federal Government first introduced the N50 levy on electronic transfers above N10,000 several years ago as part of efforts to widen the tax net and increase non-oil revenue.

The policy is anchored on regulations issued by the Federal Inland Revenue Service, or FIRS, which is responsible for collecting stamp duties on behalf of the government. Under the rules, the levy applies to electronic deposits or transfers into bank accounts, whether through mobile apps, internet banking platforms, point-of-sale channels, or other digital payment systems.

However, implementation has faced delays, clarifications, and adjustments, particularly around exemptions and responsibility for payment. Salary payments, for example, have consistently been exempt, while debates have continued over whether the sender or receiver should bear the cost.

Fintechs flagged changes earlier

The latest confirmation by banks follows earlier announcements from Nigerian financial technology firms. On September 7, 2024, several fintech companies said they planned to introduce a N50 stamp duty fee on transactions of N10,000 and above.

According to the fintechs at the time, the move was in compliance with FIRS regulations. They noted that the fee would apply to electronic transfers into both personal and business accounts, bringing fintech platforms in line with traditional banks.

That announcement signalled a broader industry shift toward uniform enforcement of the stamp duty rules, regardless of whether a transaction is processed by a bank or a fintech company. Industry analysts say the January 2026 start date gives institutions time to update systems, notify customers, and align operational processes.

Why the change matters now

The renewed focus on stamp duty enforcement comes at a time when digital payments continue to grow rapidly in Nigeria. According to data from the Nigeria Inter-Bank Settlement System, electronic transaction volumes and values have increased significantly over the past few years, driven by mobile banking, fintech adoption, and a push toward a cashless economy.

For the government, stricter application of the N50 levy represents a relatively low-cost way to generate additional revenue from a fast-expanding segment of the economy. For banks and fintechs, it underscores the need to comply fully with tax regulations while managing customer expectations.

For customers, the change means a clearer understanding of charges associated with everyday transfers. While N50 may appear modest, frequent users of digital banking platforms could see the costs add up over time, particularly small businesses and individuals who rely heavily on electronic payments.

Stakeholder and expert perspectives

A Lagos-based financial analyst, who spoke on condition of anonymity, said the clarification that senders now bear the charge could reduce disputes between banks and customers. According to him, previous confusion over who paid the levy often led to complaints, especially when beneficiaries received less than the expected amount.

He added that the uniform application of the rule across banks and fintechs could also level the playing field in the payments ecosystem. “When charges are applied inconsistently, customers tend to migrate to platforms they believe are cheaper. Standardisation removes that distortion,” he said.

Consumer advocates, however, have urged banks to continue educating customers about exemptions and applicable thresholds to avoid misunderstandings. They also stress the importance of transparency in transaction notifications, so users can clearly see when and why the N50 charge is applied.

What to watch next

As January 1, 2026 approaches, customers are likely to see more notifications from banks and fintechs outlining how the stamp duty will be implemented on their platforms. Industry watchers expect further guidance from FIRS, particularly on reporting and remittance procedures.

There may also be renewed public debate over the cumulative impact of transaction charges on financial inclusion. While the stamp duty is small in absolute terms, critics argue that multiple fees can discourage low-income users from formal banking channels.

For now, banks advise customers to review their transaction habits, understand applicable exemptions, and factor the N50 stamp duty into transfers of N10,000 and above.

Suggested visuals and data elements

Editors may consider including an infographic explaining how stamp duty works, with a simple flow showing when the N50 charge applies and when exemptions apply. A comparison chart showing old versus new responsibility for payment could also help readers quickly grasp the change. Data on the growth of electronic transactions in Nigeria would further provide useful context.

Conclusion

The decision by Nigerian banks to begin charging a N50 stamp duty on electronic transfers of N10,000 and above from January 1, 2026 marks a significant step in the full enforcement of existing tax rules. With the sender now responsible for the charge and exemptions clearly stated, the policy aims to bring greater clarity and uniformity to digital payments. As digital transactions continue to dominate everyday commerce, how customers adapt and how institutions communicate these changes will shape public response in the months ahead.