Banks in Nigeria will begin charging senders a N50 stamp duty on electronic transfers of N10,000 and above, following the implementation of the updated Tax Act starting January 1, 2026.

The levy, also referred to as the Electronic Money Transfer Levy (EMTL), is a one-off charge applied to electronic receipt or transfer of funds deposited in any commercial bank or financial institution.

It covers all types of accounts for transactions of N10,000 or more.

In a notice sent to customers on Tuesday, United Bank for Africa (UBA) clarified that the N50 EMTL will now officially be called “stamp duty” across all financial institutions.

The bank’s email read: “Please note the following: Stamp Duty applies to transactions of ₦10,000 and above (or the equivalent in other currencies).

“Salary payments and intra-bank self-transfers are exempt from stamp duty. The sender now bears the Stamp Duty charge. Previously, this charge was deducted from the beneficiary/receiver.”

UBA said its commitment to transparency, assuring customers it would continue to provide timely updates on changes that may affect banking transactions, Vanguard reports.

The introduction of the N50 stamp duty follows an announcement on September 7, 2024, by Nigerian financial technology firms (fintechs) to implement the same charge on transactions of N10,000 and above.

Cable reports that fintech companies said the move complies with Federal Inland Revenue Service (FIRS) regulations and applies to transfers into both personal and business accounts.

Other bank charges

Banks charge the following fees for customers: ATM withdrawals on their own bank’s ATMs are free, while withdrawals on other banks’ ATMs cost N100 per N20,000 with surcharges up to N500 for off-site ATMs.

Also, card maintenance fees are N50 quarterly for naira debit/credit cards linked to savings accounts and $10 annually for foreign currency cards; account maintenance fees are N1 for every N1,000 of debit transactions, including withdrawals or transfers.

There is also SMS alerts cost N4 per notification; debit/credit card issuance, replacement, or renewal is N1,000 per card.

CBN also introducing the cashless policy, deposits above N500,000 incur a 2% fee while withdrawals above N500,000 attract a 3% fee from January 1, 2026.