Banks to Begin Charging N50 Stamp Duty on Transfers Above N10,000 Starting January 1, 2026

In line with the recently updated Tax Act, banks across Nigeria are set to start imposing a N50 stamp duty on all electronic transfers valued at N10,000 and above, effective January 1, 2026. This new policy marks a shift in how financial transactions are levied in the country and directly impacts individuals and businesses conducting electronic money transfers.

The electronic money transfer levy (EMTL), commonly referred to as the stamp duty, will now be a fixed, one-time fee of N50 for every electronic receipt or transfer made through commercial banks or licensed financial institutions. The levy applies to any type of account, whether personal or business, on transactions exceeding N10,000.

UBA Confirms Changes in Customer Communications

In a recent communication sent via email to its customers on Tuesday, December 30, 2025, United Bank for Africa (UBA) clarified that the N50 electronic money transfer levy will now be formally recognized as stamp duty across all banks in Nigeria.

The email from UBA highlighted key points for account holders:

• The stamp duty applies only to transactions of N10,000 and above, or its equivalent in foreign currencies.
• Salary payments and intra-bank self-transfers are exempt from this levy.
• The responsibility for paying the stamp duty now falls on the sender, a change from the previous practice where the charge was deducted from the recipient’s account.

UBA emphasized its commitment to transparency and assured customers that it would continue to keep them informed about regulatory and operational changes that affect banking activities.

Fintech Firms Support the Implementation

Back on September 7, 2024, Nigerian financial technology firms (fintechs) had announced plans to introduce the N50 stamp duty for electronic transactions above N10,000. According to these firms, this measure aligns with the Federal Inland Revenue Service (FIRS) regulations, ensuring compliance with federal tax policies.

The fintechs confirmed that the new N50 levy will apply to all electronic transfers into both personal and business accounts, further standardizing the taxation of digital money movements across Nigeria.

What This Means for Nigerian Bank Customers

For individuals and business owners, this change means:

1. Budgeting for Transfers: Customers must now consider the N50 stamp duty as part of their transaction costs for transfers of N10,000 or more.
2. Sender Responsibility: Banks will deduct the levy from the sender’s account instead of the recipient’s, impacting cash flow planning.
3. Compliance with FIRS: This adjustment ensures that electronic transfers comply with federal tax regulations, promoting greater transparency in financial reporting.

This new measure also aims to streamline the collection of stamp duties and enhance accountability across Nigeria’s banking system.