Following the implementation of the new Tax Act, banks will begin charging senders a N50 stamp duty on electronic transfers of N10,000 and above effective January 1, 2026. The levy, previously known as the Electronic Money Transfer Levy (EMTL), is a one-off charge applied to receipts or transfers deposited in any bank or financial institution. In a customer email on Tuesday, United Bank for Africa (UBA) announced the unified change, stating the fee will now be referred to as stamp duty across all financial institutions. The bank outlined, “Please note the following: Stamp Duty applies to transactions of N10,000 and above (or the equivalent in other currencies).” It added that salary payments and intra-bank self-transfers are exempt.
The shift places the cost squarely on the sender, a reversal from previous practice where the recipient incurred the charge. “The Sender now bears the Stamp Duty charge. Previously, this charge was deducted from the Beneficiary/Receiver,” UBA’s communication clarified. The bank affirmed its commitment to transparency regarding changes affecting customer transactions. This move follows an earlier announcement by Nigerian financial technology firms on September 7, 2024, detailing plans to introduce the same N50 fee on transactions exceeding N10,000. The fintechs stated the levy aligns with Federal Inland Revenue Service (FIRS) regulations and will apply to electronic transfers into both personal and business accounts.