“New Tax Laws: What Happens When You Transfer More Than ₦10,000”
Banks in Nigeria will begin charging customers a ₦50 stamp duty on electronic transfers of ₦10,000 and above starting January 1, 2026, following the implementation of the Tax Act.
The charge, officially known as the Electronic Money Transfer Levy (EMTL), is a single, one-off fee of ₦50 applied to electronic receipts or transfers of money deposited in any commercial bank or financial institution, regardless of account type, provided the transaction is ₦10,000 or more.
In an email sent to customers on Tuesday, United Bank for Africa (UBA) informed account holders that the ₦50 EMTL will now be referred to as stamp duty across all financial institutions.
“Please note the following: Stamp Duty applies to transactions of ₦10,000 and above (or the equivalent in other currencies),” the email stated.
UBA further clarified that salary payments and intra-bank self-transfers are exempt from the stamp duty charge. The bank also noted a key change in how the fee is applied.
“The sender now bears the Stamp Duty charge. Previously, this charge was deducted from the beneficiary or receiver,” the email added.
The bank reaffirmed its commitment to transparency and keeping customers informed about changes that may affect their banking transactions.
Meanwhile, on September 7, 2024, Nigerian financial technology (fintech) firms had earlier announced plans to introduce the ₦50 stamp duty on transactions of ₦10,000 and above. The fintech companies said the move was in compliance with regulations issued by the Federal Inland Revenue Service (FIRS).
According to the fintechs, the charge applies to electronic transfers into both personal and business accounts, in line with existing tax laws.
The development means customers should expect the ₦50 deduction on eligible electronic transfers across banks and financial platforms once the policy takes effect in 2026.
