Bank Transfers: Senders To Pay ₦50 Stamp Duty From January 1

Financial institutions in Nigeria will begin deducting a ₦50 stamp duty from senders on electronic transfers of ₦10,000 and above from January 1, 2026, following the implementation of the new Tax Act.

Previously, electronic transfers of ₦10,000 and above attracted a ₦50 Electronic Money Transfer Levy (EMTL), which was typically deducted from the recipient’s account.

Under the new policy, the EMTL has been reclassified as stamp duty, and the sender will now be solely responsible for paying the charge.

The development was disclosed in notices sent by Nigerian banks to their customers ahead of the policy’s rollout. The charge will now be uniformly referred to as stamp duty across all financial institutions.

The stamp duty is a one-time ₦50 charge applied to each eligible electronic transfer or receipt of funds in any commercial bank or financial institution, regardless of account type, once the transaction value reaches or exceeds ₦10,000.

In an email sent to customers on Tuesday, United Bank for Africa (UBA) explained that the ₦50 EMTL on transfers will now be described as stamp duty across the banking industry.

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

“The Sender now bears the Stamp Duty charge. Previously, this charge was deducted from the Beneficiary/Receiver.”

Other banks also issued similar notices, confirming the January 1, 2026 implementation date and the revised charging structure.

Banks clarified that the ₦50 stamp duty is separate from standard bank transfer fees and will be transparently displayed to customers at the point of transaction.

They also stated that transfers below ₦10,000, as well as salary payments and intra-bank transfers, remained exempt from the charge.

According to the banks, the change was intended to simplify compliance with tax regulations, enhance transparency, and ensure that individuals and businesses have clear information on applicable charges before completing electronic transfers.