Nigerian banks will begin deducting a ₦50 stamp duty on electronic transfers of ₦10,000 and above starting January 1, 2026, following the commencement of provisions of the newly enacted Tax Act.
The development has been communicated to customers by several commercial banks ahead of the implementation date.
Under the new arrangement, the charge—previously known as the Electronic Money Transfer Levy (EMTL)—has been formally reclassified as stamp duty and will be applied as a flat ₦50 fee on eligible electronic transfers.
In a notice to customers, United Bank for Africa (UBA) informed account holders that the Tax Act would take effect from January 1, 2026, and that the stamp duty would apply uniformly across all financial institutions.
The bank clarified that transfers of ₦10,000 and above would attract the charge, while transactions below the threshold would remain exempt.
“Stamp duty applies to transactions of ₦10,000 and above or the equivalent in other currencies. Salary payments and intra-bank self-transfers are exempt,” UBA stated.
The bank further noted that under the new framework, the sender of the funds will bear the stamp duty, unlike the previous practice where the charge was deducted from the beneficiary’s account.
Access Bank also issued a similar notification to its customers, confirming the new deduction structure and exemptions.
Previously, electronic transfers of ₦10,000 and above attracted a ₦50 levy, but the deduction was often made from the recipient’s account, a practice that drew complaints from customers.
Banks say the revised framework is intended to improve transparency and simplify compliance for individuals and businesses.
The development comes amid President Bola Ahmed Tinubu’s insistence that the implementation of the newly signed tax laws will proceed as scheduled from January 1, 2026. The President has maintained that the reforms are aimed at restructuring Nigeria’s tax system rather than increasing the financial burden on citizens.
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