Following the enactment of the Nigeria Tax Act 2025, the Federal Inland Revenue Service (FIRS) has issued updated rules governing the Electronic Money Transfer Levy (EMTL). This is now formally classified as stamp duties, with effect from 1 January 2026.
The revised framework introduces a significant operational shift in how the ₦50 stamp duty on qualifying electronic transfers is applied across Nigeria’s banking and payments ecosystem.
What Has Changed
Under the new rules, the ₦50 stamp duty on electronic transfers of ₦10,000 and above (or their foreign currency equivalent) will now be paid by the sender. This is rather than deducted from the recipient’s account. This represents a departure from the long-standing practice in which beneficiaries bore the levy upon receipt of funds.
FIRS said the update aligns stamp duty administration with the provisions of the Nigeria Tax Act 2025 and aims to improve clarity, consistency, and taxpayer fairness in digital transactions.
Transactions Exempt from Stamp Duty
The revised rules retain several exemptions, meaning no stamp duty will apply to the following categories of transfers:
Transactions below ₦10,000
Salary payments
Self-transfers within the same bank, where the sender and receiver are the same person or entity
These exemptions are designed to protect low-value transactions and routine personal banking activity from additional costs.
Effective Date and Implementation
All changes take effect from 1 January 2026. Banks, fintechs, and payment service providers are expected to update their systems ahead of the deadline to ensure automatic deduction of the levy from senders’ accounts where applicable.
Industry analysts note that the shift could have behavioural effects on payment patterns, particularly for frequent high-value transfers, while improving transparency around who ultimately bears the cost of the levy.
Why It Matters
For consumers and businesses, the rule change clarifies liability. It reduces disputes around unexpected deductions on received funds. For regulators, it supports a more predictable and auditable stamp duty framework. This is at a time when Nigeria is expanding its digital payments infrastructure and tightening tax administration under the new Tax Act.