The Federal Government has announced changes to the collection of stamp duties on electronic bank transfers, with the N50 stamp duty now to be paid by senders of transactions of N10,000 and above from January 1, 2026.
This was disclosed in notices sent by Nigerian banks to their customers ahead of the policy’s implementation.
The new framework marks a notable shift from the existing practice, where the N50 Electronic Money Transfer Levy (EMTL) is borne by the receiver of eligible transfers.
The policy is part of broader efforts by the government to improve transparency and clarity in digital financial transactions.
What the notice is saying
Under the new rules, a N50 stamp duty will apply to electronic transfers of N10,000 and above, payable by the sender of the funds.
“Effective January 1, 2026, the Nigerian government has introduced new rules to stamp duty collection to help enhance transparency and clarity in digital transactions,” one of the banks stated.
- Banks clarified that this charge is separate from regular bank transfer fees and will be clearly disclosed to customers at the point of transaction.
- The notice also stated that transfers below N10,000 are exempt from the stamp duty.
- In addition, salary payments and intra-bank transfers—transactions between accounts within the same bank—will not attract the N50 charge.
- Beyond transfers, the updated stamp duty regime formally recognises electronic contracts and digital loan agreements under Nigerian law, providing legal clarity and protection for digital transactions.
Flat N1,000 duty for agreements
Another key change is the introduction of a flat N1,000 stamp duty on general agreements.
This replaces the previous percentage-based charges, which often created uncertainty around the total cost of documentation.
Banks say this adjustment is aimed at simplifying compliance and making stamp duty charges easier for individuals and businesses to understand upfront.
How stamp duty worked before
Prior to the new policy, electronic transfers of N10,000 and above attracted a N50 EMTL, but the charge was typically deducted from the receiver’s account.
This approach had drawn criticism from customers who argued that beneficiaries should not bear costs for funds they did not initiate.
The revised framework addresses this concern by aligning the charge with the initiator of the transaction, in line with international practices.
- Electronic transfers are central to Nigeria’s digital economy, supporting everyday payments, salaries, business transactions, and fintech services.
- Shifting the stamp duty burden to senders could improve transparency and reduce disputes, as customers will now see the full cost of a transaction before completion.
- For businesses and individuals making frequent transfers, the clarification on exemptions—especially for salaries and intra-bank transfers—provides greater certainty in financial planning.
What you should know
Nairametrics earlier reported that the Federal Government was able to beat its revenue target from EMTL by N88.73 billion by half-year 2025 as Nigerians performed more electronic transactions.
Based on the N230 billion full-year revenue projection from the EMTL, the half-year revenue expected to be at N134.17 billion surged to N222.90 billion, representing a 66.1% outperformance.
The EMTL performance helped boost the government’s non-oil revenue for the period and cushioned the effect of a weak oil revenue.
