Nigerian financial institutions will introduce a ₦50 stamp duty on electronic transfers of ₦10,000 and above starting January 1, 2026. This development follows the implementation of the Tax Act, as announced by Nigerian banks in notices sent to their customers. The stamp duty, also known as the electronic money transfer levy (EMTL), is a one-off charge of ₦50 on electronic receipt or transfer of money deposited in any commercial money bank or financial institution on sums of ₦10,000 and above.
According to the notices, the ₦50 EMTL on transfers will now be referred to as stamp duty across all financial institutions. The charge will be borne by the sender, unlike the previous arrangement where it was deducted from the beneficiary’s account. Salary payments and intra-bank self-transfers are exempt from the stamp duty. Banks have clarified that this charge is separate from regular bank transfer fees and will be clearly disclosed to customers at the point of transaction.
The introduction of the stamp duty is part of the new tax laws scheduled to take effect on January 1, 2026. President Bola Tinubu has insisted that the implementation of the new tax laws will proceed as planned, despite criticisms from opposition and pressure groups. The president stated that the tax laws are designed to support a structural reset, drive harmonisation, and protect dignity while strengthening the social contract.
The adjustment is aimed at simplifying compliance and making stamp duty charges easier for individuals and businesses to understand upfront. The previous percentage-based charges often created uncertainty around the total cost of documentation. With the new policy, transfers below ₦10,000 are exempt from the stamp duty, providing some relief to low-value transactions.
The implementation of the new tax laws, including the stamp duty, is expected to have significant implications for individuals and businesses in Nigeria. As the country prepares for the changes, it remains to be seen how the new laws will impact the economy and financial transactions. For now, financial institutions are gearing up to effect the ₦50 stamp duty on transfers above ₦10,000 from January 1, 2026, as part of the broader efforts to reform the tax system and promote economic growth.
