Nigerian bank customers will see a significant change in how a key transaction levy is applied from the start of 2026. Financial institutions across the country are set to implement a revised N50 stamp duty charge on all electronic transfers of N10,000 and above, effective January 1, 2026.
Sender Now Bears the Cost of the Electronic Transfer Levy
This levy, previously known as the Electronic Money Transfer Levy (EMTL), will now be officially referred to as "stamp duty" across all banks and financial institutions. In a crucial shift, the charge will be borne by the sender of the funds, a change from the previous practice where it was deducted from the beneficiary's account.
The policy applies to transfers into both personal and business accounts for any transaction at or above the N10,000 threshold. United Bank for Africa (UBA) confirmed this change in a customer notice, clarifying the new implementation details. The bank stated that salary payments and transfers between a customer's own accounts within the same bank will be exempt from this charge.
Background and Regulatory Compliance
This move follows the updated provisions of the Tax Act and aligns with an earlier announcement made by Nigerian fintech companies on September 7, 2024. The fintechs had stated their intention to implement the same charge to comply with regulations set by the Federal Inland Revenue Service (FIRS).
UBA has emphasized its commitment to transparency, assuring customers that it will continue to provide timely updates on any changes affecting their banking transactions. The bank's communication aimed to prepare customers well in advance of the January 2026 start date.
Other Approved Bank Charges to Note
Alongside the new stamp duty structure, the Central Bank of Nigeria (CBN) has outlined several other approved charges for commercial banks:
- ATM Withdrawals: Free on own bank's ATMs; N100 per N20,000 on other banks' ATMs, with possible surcharges up to N500 for off-site machines.
- Card Maintenance: N50 quarterly for Naira cards; $10 annually for foreign currency cards.
- Account Maintenance: N1 for every N1,000 of debit transactions.
- SMS Alerts: N4 per notification.
- Card Issuance/Replacement: N1,000 per card.
Furthermore, the CBN's cashless policy will see additional fees from January 1, 2026. Deposits above N500,000 will incur a 2% fee, while withdrawals above the same amount will attract a 3% charge.
The CBN's guide to charges mandates that any transaction receipt must clearly describe the levy applied. Banks that charge above the approved rates or introduce new fees without CBN authorization face significant penalties.
