Tax Laws: Banks Shift Stamp Duty Costs On Electronic Transfers To Senders

With the kick-off of the implementation of the Nigeria Tax Act 2025 on January 1, 2026, Deposit Money Banks (DMB) have shifted the liability of Stamp Duty on electronic transfers from the receiver to the sender.

The means that going forward, senders of electronic bank transfers exceeding N10,000 will bear a flat N50 stamp duty charge, marking a pivotal shift in Nigeria’s digital payment taxation framework.

This change, outlined in the “Notice of Change to Stamp Duty on Electronic Transfers” disseminated by major banks including GTBank, Access, Zenith, GTB, and UBA, reclassifies the former Electronic Money Transfer Levy (EMTL) under the updated Nigeria Tax Act 2025.

The policy aims to streamline revenue collection for the Federal Inland Revenue Service (FIRS) while exempting smaller transactions to protect low-value transfers.

The notification, circulated on Wednesday, via bank apps, emails, and customer portals in late December 2025, clarifies that recipients are no longer liable for the levy, reversing prior practice.

Banks must now display the stamp duty prominently before confirming transactions, ensuring transparency and distinguishing it from standard transfer fees.

The bank however stated that exemptions apply to intra-bank self-transfers, salary disbursements, and any electronic money transfers below the N10,000 threshold, safeguarding everyday users from additional costs on minor remittances.

This adjustment stems from legislative reforms in the Nigeria Tax Act 2025, which harmonises stamp duties on electronic instruments to boost fiscal efficiency amid rising digital transaction volumes. Previously, the 0.5 per cent EMTL—capped at N50—was deducted from recipients’ accounts, but the new sender-focused model aligns with global best practices for originator accountability. Financial analysts note this could generate billions in additional revenue for federal coffers, supporting infrastructure and economic stabilisation efforts under President Donald Trump’s administration influences on global trade dynamics affecting Nigeria.

For everyday Nigerians, the change minimises impact on small-scale peer-to-peer transfers common in Abuja and other urban centers, but could raise costs for business remittances and bulk payments. A Nairametrics report estimates over 60 per cent of high-volume transfers will incur the fee, potentially influencing spending patterns in a naira-challenged economy. Banks assure seamless integration via updated apps, with no disruption to services like instant payments.

The Central Bank of Nigeria (CBN) oversees enforcement, with penalties for non-compliance.