The Federal Government has mandated that financial institutions begin deducting a ₦50 Stamp Duty on all electronic transfers of ₦10,000 and above, effective January 1, 2026.
This charge, formerly known as the Electronic Money Transfer Levy (EMTL), has been restructured under the newly enacted Tax Act to shift the cost burden from the receiver to the sender.
While Nigeria has utilized various forms of transfer levies in the past, the new Tax Act aims to harmonize revenue collection. The implementation comes despite pushback from opposition groups and legal experts who allege discrepancies in the gazetted versions of the law.
The ₦50 fee is now borne by the sender of the funds, rather than the beneficiary.
Only transactions of ₦10,000 or more,including foreign currency equivalents are subject to the charge.
Salary payments and transfers between different accounts owned by the same individual within the same bank remain exempt.
These reforms are a once-in-a-generation opportunity to build a fair, competitive, and robust fiscal foundation for our country – President Bola Ahmed Tinubu
As the law takes effect today, the Federal Government intends to use the revenue to reduce the budget deficit of the country
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