By Nchetachi Chukwuajah
Following the commencement of provisions of the new Tax Acts, Nigerian banks will begin deducting N50 as Stamp Duty on electronic transfers of N10,000 and above from January 1, 2026.
The new development was communicated to customers by several commercial banks ahead of the policy’s implementation.
Under the arrangement, the charge, previously known as the Electronic Money Transfer Levy (EMTL) will now be formally classified as Stamp Duty and applied as a one-off N50 fee on qualifying electronic transfers.
Unlike what previously applied, the Stamp Duty would be deducted from the sender’s account and not from the beneficiary or receiver.
In a notice to customers on Tuesday, December 30, the United Bank for Africa (UBA) informed customers that the new Tax Act would take effect from January 1 and that the charge would apply uniformly across financial institutions.
UBA further clarified that transfers of N10,000 and above would attract the Stamp Duty, while transactions below the threshold would be exempted.
The bank’s statement read:“Stamp Duty applies to transactions of N10,000 and above (or the equivalent in other currencies). Salary payments and intra-bank self-transfers are exempted from stamp duty.
“The sender now bears the Stamp Duty charge. Previously, this charge was deducted from the beneficiary/receiver.”
Similarly, Access Bank issued the same notification to its account holders, confirming the changes and the exemptions.
Banks said the revised framework is intended to simplify compliance and make the charges more transparent for individuals and businesses.
The development follows President Bola Tinubu’s insistence that the implementation of the new tax laws would proceed as scheduled from January 1 despite objections from groups and civil society organisations.
President Tinubu said the reforms were aimed at overhauling Nigeria’s tax system rather than increasing the burden on citizens.
He described the Tax Acts as “a once-in-a-generation opportunity to build a fair, competitive, and robust fiscal foundation for our country.”
The president further stated that no substantial issue has been established to warrant disruption of the reforms, affirming that his administration is committed to due process and the integrity of enacted laws.
