Banks across Nigeria will commence the deduction of a N50 stamp duty on electronic transfers of N10,000 and above from January 1, 2026, following the implementation of the Tax Act.
The charge, officially known as the electronic money transfer levy (EMTL), is a one-time fee of N50 applied to electronic receipts or transfers of funds deposited in any commercial bank or financial institution. It applies to all account types for transactions of N10,000 and above.
In a notice to customers on Tuesday, United Bank for Africa (UBA) announced that the N50 EMTL on transfers will now be uniformly referred to as stamp duty across all financial institutions. The bank clarified that the levy applies to transactions of N10,000 and above, or their equivalent in foreign currencies.
UBA noted that certain transactions are exempt from the charge, including salary payments and intra-bank self-transfers. The bank also highlighted a key change in the application of the levy, stating that the stamp duty will now be borne by the sender of the funds, rather than the beneficiary, as was previously the case.
The bank said the update reflects its commitment to transparency and keeping customers informed about changes affecting their banking activities.
The development follows an earlier announcement on September 7, 2024, when Nigerian financial technology companies disclosed plans to implement the N50 stamp duty on electronic transactions of N10,000 and above. The fintech firms explained that the move was in line with regulations issued by the Federal Inland Revenue Service (FIRS), adding that the fee would apply to transfers into both personal and business accounts.
