Nigerians will soon be subjected to a N50 stamp duty on electronic bank transfers exceeding N10,000, a change set to be implemented from January 1, 2026. This new policy, stemming from the updated Tax Act, introduces a direct charge on financial transactions, impacting how individuals and businesses manage their money. The electronic money transfer levy, now referred to as stamp duty, is a singular, one-off charge applied to all electronic receipts or transfers deposited in commercial banks or financial institutions for sums of N10,000 and above. This marks a significant shift from previous practices where such charges were often deducted from the receiver’s account, introducing clarity on the sender’s responsibility.
Banks have begun notifying their customers about this upcoming change, with United Bank for Africa (UBA) confirming that the N50 electronic money transfer levy will now be universally recognized as stamp duty across all financial institutions. This standardization aims to simplify compliance and provide a clearer understanding of transaction costs for all parties involved. The notices sent out emphasize that the stamp duty applies to transactions of N10,000 and above, or its equivalent in other currencies, ensuring a consistent application of the new regulation.
Featured snippet paragraph: The answer is that Nigerians will pay a N50 stamp duty on electronic bank transfers of N10,000 and above, with the sender now bearing the charge, starting January 1, 2026, as part of the new Tax Act implementation.
This new directive clarifies that salary payments and intra-bank self-transfers, which involve moving funds between accounts within the same bank, will be exempt from this stamp duty. This exemption is crucial for individuals relying on regular salary disbursements and for those who frequently manage funds within their personal banking ecosystem.
Access Bank customers have also received similar notifications, underscoring the widespread nature of this policy change. The banks have been diligent in explaining that this stamp duty is distinct from standard bank transfer fees, and it will be explicitly disclosed to customers at the moment they initiate a transaction, preventing any unexpected deductions.
Transfers falling below the N10,000 threshold are explicitly exempted from this stamp duty. This provision ensures that smaller, everyday transactions remain unaffected, allowing for the continued ease of managing micro-transactions without additional charges.
The implementation of this N50 stamp duty replaces previous, often complex, percentage-based charges. These older charges could create ambiguity regarding the total cost associated with documentation, making it difficult for users to predict expenses accurately.
Banks have stated that this adjustment is primarily intended to streamline compliance processes. By simplifying the stamp duty charges, the goal is to make them more transparent and easier for both individuals and businesses to comprehend before they commit to a transaction.
President Bola Tinubu has affirmed that the implementation of these new tax laws will proceed as scheduled on January 1, 2026. Despite criticisms and concerns raised by opposition groups and various pressure organizations, the administration remains committed to its economic reform agenda.
In a statement, President Tinubu emphasized that the primary objective of these tax laws is not to increase the overall tax burden on citizens. Instead, the focus is on fostering a structural reset of the economy, driving harmonization across sectors, and reinforcing the social contract between the government and its people.
He further elaborated that the new tax laws, including those that took effect earlier on June 26, 2025, and the remaining acts scheduled for commencement on January 1, 2026, will be enacted as planned. This indicates a comprehensive approach to fiscal reform, aiming for long-term economic stability and growth.
Understanding the specifics of this stamp duty is crucial for financial planning. Nigerians need to be aware of the N10,000 threshold and the fact that the sender is now responsible for the N50 charge on eligible transfers.
The shift in responsibility for the stamp duty from the beneficiary to the sender is a notable change that will require users to adjust their transaction habits and financial expectations. This ensures that the cost is borne by the initiator of the transfer.
This new regulation is part of a broader economic strategy designed to enhance revenue collection and streamline financial governance within Nigeria. The government anticipates that these measures will contribute to a more robust and predictable fiscal environment.
As January 1, 2026, approaches, financial institutions will continue to disseminate information to ensure their customers are fully informed about the stamp duty on transfers. Staying updated on these changes is vital for avoiding any misunderstandings or unexpected financial implications.
