Nigerian banks will begin deducting a ₦50 stamp duty charge on electronic transfers of ₦10,000 and above from January 1, 2026, as part of the implementation of the Tax Act and updated regulations on electronic money transfers.
The charge, officially known as the Electronic Money Transfer Levy (EMTL), is a one-time ₦50 fee applied to qualifying electronic transfers made into accounts held with commercial banks and other financial institutions. Under the new arrangement, the levy will now be uniformly referred to as stamp duty across the banking sector.
United Bank for Africa (UBA) disclosed the change in an email sent to its customers on Tuesday, explaining how the charge will be applied and who will bear the cost. The bank noted that stamp duty will apply to transactions of ₦10,000 and above, or the equivalent amount in foreign currencies.
According to the bank, salary payments and self-transfers made within the same bank are exempt from the charge. UBA also clarified that the sender of the funds will now pay the ₦50 stamp duty, unlike before when the fee was deducted from the beneficiary or receiver of the transfer.
“Please note the following: Stamp Duty applies to transactions of ₦10,000 and above (or the equivalent in other currencies),” the bank said in the email. “Salary payments and intra-bank self-transfers are exempt from stamp duty. The sender now bears the stamp duty charge.”
UBA reaffirmed its commitment to openness, assuring customers that it will continue to provide timely information on policy changes that may affect their banking activities.
The move is also in line with earlier disclosures by Nigerian financial technology companies, which on September 7, 2024, announced plans to introduce a ₦50 stamp duty on electronic transfers of ₦10,000 and above. The fintech firms said the charge complies with guidelines from the Federal Inland Revenue Service (FIRS) and applies to transfers into both personal and business accounts.
