In a significant development for Nigeria's financial sector, the Presidential Committee on Fiscal Policy and Tax Reforms has announced the abolition of five major banking charges effective January 2026. This move forms part of President Bola Ahmed Tinubu's comprehensive tax reform agenda aimed at reducing financial burdens on citizens.
Key Banking Charges Being Eliminated
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, confirmed that the new tax framework will remove several longstanding fees that have affected millions of Nigerians. The reforms were signed into law on 26 June 2025 and comprise multiple acts including the Nigeria Tax Act and Nigeria Tax Administration Act.
Specific Charges Being Abolished
The first major change involves the Electronic Money Transfer Levy. Currently, banks charge ₦50 for every electronic transfer under ₦10,000, affecting countless small transactions daily. From January 2026, this fee will be completely eliminated, making small digital transfers free.
Another significant removal is stamp duty on salary payments. Both employers and employees have been bearing this additional cost on monthly payroll processing. The abolition will provide relief particularly to small businesses and low-income earners who are most sensitive to transactional costs.
The reforms also target investment-related charges. Stamp duty on government securities and share transfers will be eliminated, making investment more accessible to ordinary Nigerians. Similarly, stamp duty on documents for stocks and shares transfers will be removed, reducing administrative burdens for investors.
Finally, intra-bank transfers between accounts within the same bank will no longer attract the current ₦50 fee per transaction. This change is expected to improve cash management for businesses and individuals who frequently move funds between their accounts.
Broader Impact and Additional Benefits
These banking charge eliminations are part of a wider tax reform package that includes VAT exemptions on essential items. Basic food products, educational and health services, pharmaceutical products, and agricultural inputs will either be exempt from VAT or attract a 0% rate.
Small businesses with annual turnover not exceeding ₦100 million will be exempt from charging VAT entirely. The suspension of VAT on diesel, petrol, solar equipment, and humanitarian supplies will continue under the new framework.
The comprehensive reforms are designed to stimulate economic growth, enhance the business environment, and provide substantial financial relief to everyday Nigerians. The changes represent a major step toward creating a more transparent and cost-effective banking experience for all citizens.
