If you have an account in any bank in Nigeria, you would have received an email informing you of the change to Stamp Duty on Electronic Transfers in Nigeria Effective 1 January 2025.
Nigeria’s stamp duty framework for electronic transfers is undergoing a significant operational shift under the Nigeria Tax Act 2025, with banks already notifying customers ahead of full implementation. While stamp duty on electronic transfers is not new, the updated regime introduces a key clarification that changes who bears the cost of the levy.
Under the revised rules, the longstanding ₦50 stamp duty on electronic transfers of ₦10,000 and above will no longer be charged to the recipient of funds. Instead, effective January 1, 2026, the sender of the transaction will be responsible for paying the ₦50 stamp duty.
This change represents a shift in liability rather than the introduction of a new tax and is intended to improve transparency, fairness, and predictability in Nigeria’s rapidly expanding digital payments ecosystem.
Background: How Stamp Duty Has Worked
Historically, stamp duty in Nigeria applied mainly to physical documents such as agreements and receipts. As electronic payments became dominant, the scope of stamp duty expanded to include electronic money transfers, with banks required to deduct a flat ₦50 charge on qualifying transactions of ₦10,000 and above.
Until now, this charge was typically deducted from the receiver’s account, often surprising individuals and businesses who received multiple transfers daily.
What Has Changed Under the Nigeria Tax Act 2025
The revised framework clarifies both application and liability:
- The ₦50 stamp duty remains applicable to electronic transfers of ₦10,000 and above
- From January 1, 2026, the duty will be paid by the sender, not the receiver
- Transfers below ₦10,000 remain exempt
- Salary payments and intra-bank transfers (within the same bank) are excluded
- The stamp duty charge is separate from standard transfer fees
- Banks must clearly disclose the charge at the point of transaction
Ahead of implementation, banks have begun notifying customers via emails, mobile apps, SMS alerts, and in-branch notices to ensure awareness and reduce confusion.
Why This Change Matters
This shift aligns Nigeria with global payment norms, where transaction-related levies are typically borne by the initiator of the transfer. For recipients—particularly SMEs, merchants, and professionals who receive multiple payments daily—the change removes an often-criticised friction point in digital commerce.
For senders, it introduces greater cost transparency, as the charge is visible before transaction confirmation rather than appearing unexpectedly after funds are received.
From a policy standpoint, the reform supports Nigeria’s broader objective of broadening the tax base without increasing rates, while modernising tax administration in a cashless economy.
What Nigerians Should Know (Quick Guide)
- This is not a new tax — it is a change in who pays the stamp duty
- The ₦50 charge still applies only to transfers of ₦10,000 and above
- Senders will pay the duty from January 1, 2026
- Salary payments are exempt
- Transfers within the same bank are exempt
- The charge will be clearly shown before you complete a transfer
- It is separate from normal bank transfer fees
Stamp Duty on Electronic Transfers: Before vs After
| Item | Before (Pre-2026) | After (From Jan 1, 2026) |
|---|---|---|
| Who pays the ₦50 stamp duty | Receiver | Sender |
| Applies to transfers | ₦10,000 and above | ₦10,000 and above |
| Transfers below ₦10,000 | Exempt | Exempt |
| Salary payments | Exempt | Exempt |
| Intra-bank transfers | Exempt | Exempt |
| Disclosure timing | After receipt | Before transaction confirmation |
| Separate from transfer fees | Yes | Yes |
Looking Ahead
As Nigeria continues its transition toward a digital-first financial system, clarity around transaction charges will be critical to maintaining trust and adoption. The sender-pays stamp duty model improves predictability for recipients, enhances transparency for senders, and reinforces the role of banks as frontline tax collection agents in a modernised fiscal framework.
