New Tax Act Triggers N50 Charge on Transfesr As Senders Pay From January 1, 2025
Nigerians are bracing for a fresh squeeze on everyday banking as commercial banks move to charge senders ₦50 on every electronic transfer of ₦10,000 and above starting January 1, 2026 following the rollout of the new Tax Act.
The charge, known as stamp duty or Electronic Money Transfer Levy (EMTL), will apply across banks and financial institutions, marking a major shift in who pays and how often Nigerians feel the impact of tax reforms.
Banks Confirm: Sender Now Pays
In a notice to customers, United Bank for Africa confirmed that the ₦50 levy will now be borne by the sender, not the receiver, reversing the long-standing practice where beneficiaries absorbed the charge.
According to the bank, the EMTL will now be uniformly referred to as stamp duty across the banking system.
What Transactions Are Affected?
Under the new framework, every electronic transfer of ₦10,000 and above including interbank transfers will attract a one-off ₦50 charge.
However, banks say salary payments and intra-bank self-transfers (moving money between your own accounts in the same bank) will be exempt.
Why This Is Happening Now
Financial institutions say the move aligns with regulations issued by the Federal Inland Revenue Service, as part of the broader Tax Act implementation scheduled to kick in fully on January 1, 2026.
Fintech companies had earlier signalled the change in 2024, citing compliance obligations—but its full-scale rollout across banks is now sparking backlash.
While authorities insist the Tax Act is not designed to raise taxes, critics argue that charging citizens for sending their own money undermines financial inclusion and disproportionately hurts low- and middle-income Nigerians who rely heavily on transfers.
For many users who make multiple daily transfers, the levy could quietly add up—turning routine banking into a recurring tax trap.
Transparency Promised, Anger Builds
Banks say they are committed to transparency and customer education, but social media reactions suggest growing frustration with what many see as another hidden cost of going cashless.
With January 1 fast approaching, Nigerians are asking a blunt question: if this isn’t a tax increase, why does it feel like one?
