iDeemlawfulWith the commencement of the Nigeria Tax Act 2025 on January 1, 2026, Deposit Money Banks (DMBs) have transferred responsibility for Stamp Duty on electronic transfers from recipients to senders.
Under the new arrangement, customers initiating electronic transfers above N10,000 will now pay a flat N50 stamp duty fee, signalling a major adjustment in Nigeria’s digital payment taxation structure.
The development was communicated in a “Notice of Change to Stamp Duty on Electronic Transfers” issued by leading banks such as GTBank, Access Bank, Zenith Bank, GTB, and UBA, following the reclassification of the former Electronic Money Transfer Levy (EMTL) under the Nigeria Tax Act 2025.
The revised framework is intended to simplify revenue collection for the Federal Inland Revenue Service (FIRS) while shielding low-value transactions from additional charges.
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The notification, circulated on Wednesday through bank applications, emails, and customer portals in late December 2025, explained that beneficiaries of transfers will no longer bear the levy, reversing the previous charging model.
Banks are now required to clearly display the stamp duty charge before transaction confirmation, ensuring transparency and separating it from regular transfer fees.
The banks also clarified that exemptions remain in place for self-transfers within the same bank, salary payments, and all electronic transfers below the N10,000 threshold, protecting routine and low-value transactions.
The adjustment follows provisions of the Nigeria Tax Act 2025, which harmonises stamp duties on electronic instruments to improve fiscal efficiency amid increasing digital transaction volumes. Previously, the 0.5 per cent EMTL—capped at N50—was deducted from recipients’ accounts, but the revised sender-based model aligns with international practices that place liability on transaction originators.
Financial analysts suggest the change could boost federal revenue, potentially generating billions of naira to support infrastructure development and economic stabilisation efforts.
For everyday Nigerians, the policy is expected to have minimal impact on small peer-to-peer transfers common in cities like Abuja, though it may slightly increase costs for businesses making frequent or bulk payments. A Nairametrics report estimates that more than 60 per cent of high-value transfers will attract the charge, possibly influencing spending behaviour in a strained economic environment.
Banks have assured customers that the update has been seamlessly integrated into their digital platforms, with no disruption to services such as instant payments.
The Central Bank of Nigeria (CBN) is responsible for overseeing compliance, with penalties предусмотрed for any breaches of the directive.