Nigerian banks are set to implement a new ₦50 stamp duty on electronic transfers of ₦10,000 and above starting January 1, 2026, a direct consequence of the recently enacted Tax Act. This charge, officially known as the Electronic Money Transfer Levy (EMTL), represents a one-off deduction applied to qualifying electronic transactions. It will affect transfers or receipts of funds deposited into any commercial bank or financial institution, irrespective of the account type, provided the transaction amount reaches or surpasses ₦10,000.
Customers have been informed about this upcoming change through official communications from their respective banks. The implementation of this new levy signifies a significant shift in how electronic financial transactions are taxed within the country, impacting a wide range of individuals and businesses.
Featured snippet paragraph: The new Electronic Money Transfer Levy (EMTL) is a ₦50 stamp duty that will be applied to electronic transfers of ₦10,000 or more, starting January 1, 2026, as mandated by the new Tax Act.
United Bank for Africa (UBA), in a notice released on Tuesday, clarified that the ₦50 EMTL will be consistently referred to as “stamp duty” across all financial institutions. This standardization aims to ensure clarity and uniformity in how the charge is communicated to the public.
The bank further emphasized that this charge is statutory, meaning it is legally mandated by the government, and will be automatically applied to all eligible transactions in strict adherence to the new regulations.
This new policy is not localized but will take effect nationwide from the beginning of January 2026, affecting all commercial banks and financial institutions operating within Nigeria.
The introduction of the Electronic Money Transfer Levy is part of broader fiscal reforms aimed at increasing government revenue. Understanding how this new tax will affect personal and business finances is crucial for effective financial planning.
For individuals who frequently make electronic transfers, it is important to factor in this additional cost when budgeting for transactions exceeding the ₦10,000 threshold.
Businesses that rely heavily on electronic payments will also need to reassess their operational costs to account for the new stamp duty.
The long-term impact of this levy on the adoption of digital payment systems remains to be seen, but initial reactions suggest a need for adaptation.
Financial institutions are tasked with the responsibility of correctly implementing and remitting these collected levies to the relevant government authorities.
This development underscores the dynamic nature of tax laws and the importance of staying informed about changes that affect financial activities.
As the January 1, 2026, deadline approaches, consumers and businesses are advised to familiarize themselves with the specifics of the new stamp duty to avoid any surprises.
