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Upcoming Changes in Nigeria’s Electronic Transfer Fees
Starting January 2026, transferring ₦50,000 (approximately $34.14) via your banking app could incur an additional ₦100 in fees. This increase isn’t due to banks altering their charges but stems from a government policy shift regarding who shoulders the cost of electronic money transfers.
Five years after the Electronic Money Transfer Levy (EMTL) replaced the traditional stamp duty, Nigeria is reinstating stamp duties as outlined in recent budget proposals. This policy reversal will significantly impact how everyday digital transactions are processed and charged. Introduced in 2020, the EMTL imposed a flat ₦50 fee on electronic transfers of ₦10,000 ($6.83) and above, paid by the recipient. This was part of Nigeria’s strategy to diversify government revenue beyond oil and capitalize on the booming e-payments sector, which reached a staggering ₦1 quadrillion in transaction value in 2024.
From EMTL to Stamp Duty: What’s Changing?
Under the Nigeria Tax Act 2025, the EMTL has been rebranded as stamp duty and broadened to cover various chargeable instruments, including tax stamps, electronic tagging, digital receipts, and certificate issuance. The government has emphasized strict enforcement of these regulations to maximize revenue collection over the coming years.
Crucially, the ₦50 charge will no longer be deducted once from the recipient’s funds. Instead, from 2026 onward, the sender will bear this cost, making stamp duty an additional fee layered on top of existing transfer charges.
This shift transforms what was previously a hidden cost for recipients into a visible, recurring expense for senders, potentially altering consumer habits, fintech pricing strategies, and the government’s reliance on digital payments as a sustainable revenue source.
Impact on Consumers and Businesses
Currently, most bank customers pay transfer fees based on the amount: ₦10 for transfers under ₦5,000; ₦25 for amounts between ₦5,001 and ₦50,000; and ₦50 for transfers exceeding ₦50,000.
From 2026, sending ₦10,000 or more will cost between ₦75 and ₦100 per transaction, depending on the amount, with the sender absorbing the full fee. Recipients will receive the full amount without deductions.
For businesses, this change means they no longer need to deduct ₦50 from incoming payments, simplifying accounting. Point-of-Sale (PoS) agents, who typically incorporate all fees into withdrawal charges, will also no longer deduct the ₦50 from transfers above ₦10,000. However, this adjustment increases the financial burden on those initiating transactions, unlike before when costs were shared between sender and receiver.
Fintech companies such as OPay and PalmPay, which have attracted users through low or zero transfer fees, will now face challenges as transactions above ₦10,000 incur additional costs for senders. The rapid adoption of digital payments in Nigeria has been driven by their speed, convenience, and affordability. Each new fee layer threatens to erode these advantages. While the government’s goal is to fund public services through these charges, Nigerians will feel the impact as they pay ₦50 more every time they send money across platforms.
Financial Implications and Revenue Projections
The EMTL has become a modest but expanding revenue source for the Nigerian government. In 2024, it generated ₦219.11 billion ($149.61 million), surpassing the projected ₦174.24 billion ($118.98 million). From January to July 2025 alone, collections reached ₦211.75 billion ($144.59 million), already 92% of the full-year target of ₦228.85 billion ($156.27 million).
This growth was largely fueled by extending the levy to fintech platforms like OPay, PalmPay, and Moniepoint, which were initially exempt. Since December 2024, fintech transactions have been fully incorporated into the tax net.
With the expanded stamp duty framework, the government forecasts revenues of ₦456.07 billion ($311.42 million) in 2026, increasing to ₦579.82 billion ($395.92 million) in 2027, and reaching ₦752.45 billion ($513.79 million) by 2028. These projections are integral to medium-term fiscal planning, positioning stamp duty as a cornerstone of Nigeria’s non-oil revenue strategy.
Revenue distribution under EMTL allocated 15% to the federal government, 50% to states, and 35% to local governments. The new tax law adjusts this split, reducing the federal share to 10% while increasing states’ portion to 55%.
Broader Tax Reform Context
The replacement of EMTL with stamp duty is part of a comprehensive tax reform package set to take effect in January 2026. According to government statements, these reforms aim to enhance tax collection efficiency and boost non-oil revenue streams, critical for Nigeria’s economic diversification.
While the additional ₦50 fee per transfer may seem minor individually, when multiplied by millions of daily transactions, it accumulates into hundreds of billions of naira in government revenue. However, this also gradually diminishes the affordability of digital payments for everyday Nigerians who depend on fast, low-cost money transfers.
Exchange rate used: ₦1,464.5 = $1
