With the commencement of the Nigeria Tax Act 2025 on January 1, 2026, Deposit Money Banks across the country have implemented a major change in the way stamp duty is charged on electronic transfers.
Under the new rule, customers initiating transfers above ₦10,000 will now pay a flat ₦50 stamp duty, shifting the burden from recipients to senders.
The policy marks a significant departure from the previous arrangement, where the Electronic Money Transfer Levy (EMTL) was deducted from the accounts of recipients.
The new sender-based model places responsibility on the originator of the transfer, aligning Nigeria’s stamp duty rules with international best practices and simplifying revenue collection for the Federal Inland Revenue Service (FIRS).
Banks including GTBank, Access Bank, Zenith Bank, and UBA issued notices titled “Notice of Change to Stamp Duty on Electronic Transfers” to customers via mobile apps, emails, and online portals.
These notices explained that receivers are no longer responsible for the levy and assured customers that the charge would be displayed clearly before transactions are confirmed, distinguishing it from regular transfer fees.
The Act provides exemptions to shield low-value and essential transactions from additional costs.
Transfers below ₦10,000, salary payments, and self-transfers within the same bank are exempt from the levy.
Officials say these exemptions are designed to protect everyday users and ensure that the policy does not discourage small-scale transactions or burden wage earners.
Fiscal Efficiency and Revenue Goals
The reform is part of broader efforts to improve fiscal efficiency amid rising digital payment volumes in Nigeria. By standardising stamp duty across electronic transactions, the government hopes to block loopholes, streamline collection, and boost federal revenue.
Previously, the EMTL was charged at 0.5% capped at ₦50, deducted from recipients’ accounts. Analysts note that while the new sender-based model may increase costs for businesses and high-value transfers, it is expected to provide greater clarity and fairness in the taxation structure.
The Central Bank of Nigeria (CBN) will supervise compliance and apply penalties where necessary to ensure smooth implementation.
Banks have assured customers of seamless integration across updated digital channels, promising that the levy will be processed transparently and without disruption to electronic payment systems.
Financial experts believe the reform could strengthen Nigeria’s fiscal position, though they caution that businesses may need to adjust to the added costs on bulk transfers.
For households, however, the exemptions on small transactions and salaries are expected to cushion the impact, making the policy more balanced in its application.
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