Bank Transfers: Senders to Bear ₦50 Stamp Duty on Eligible Transactions from January 1

The Federal Government has announced a change to the application of stamp duty on electronic bank transfers, with senders now required to pay the ₦50 levy on transactions of ₦10,000 and above starting from January 1, 2026.

The development was communicated to customers through official notices issued by commercial banks ahead of the policy’s commencement.

Under the revised framework, the ₦50 Electronic Money Transfer Levy (EMTL) will no longer be deducted from the recipient’s account, marking a shift from the long-standing practice that placed the burden on beneficiaries of qualifying transfers.

According to the notices, the adjustment is part of broader efforts to improve transparency and align digital transaction charges with international best practices.

What the new rule changes

Banks explained that, effective January 1, 2026, the ₦50 stamp duty will be charged to the sender of any electronic transfer valued at ₦10,000 or more.

The charge, they noted, is separate from regular transfer fees and will be clearly displayed to customers before transactions are completed.

Transfers below ₦10,000 remain exempt from the levy, while salary payments and intra-bank transfers, transactions between accounts within the same bank, will also not attract the stamp duty.

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Beyond bank transfers, the updated framework formally recognizes electronic contracts and digital loan agreements under Nigerian law, providing clearer legal backing for digitally executed financial documents.

Another notable change is the introduction of a flat ₦1,000 stamp duty on general agreements, replacing the previous percentage-based charges that often made documentation costs unpredictable.

Banks say this flat rate is intended to simplify compliance for individuals and businesses while making stamp duty obligations easier to understand upfront.

Before now, electronic transfers of ₦10,000 and above attracted the ₦50 EMTL, but the charge was typically deducted from the recipient’s account, a practice that had drawn criticism from customers who argued they were being charged for transactions they did not initiate.

By shifting the levy to senders, the government appears to be addressing these concerns, ensuring that the full cost of a transfer is visible to the party initiating it.

Electronic transfers play a central role in Nigeria’s digital economy, supporting daily payments, salaries, business operations, and fintech services. Analysts say the revised approach could reduce disputes and improve cost transparency, especially for frequent users of digital banking channels.