Relief for Nigerians as FG eliminates ₦50 electronic transfer fee

Starting January 2026, millions of Nigerians will benefit from significant financial relief as the Federal Government has decided to eliminate the ₦50 Electronic Money Transfer Levy (EMTL) along with four other commonly applied bank fees. This change is part of President Bola Ahmed Tinubu’s extensive fiscal and tax reform initiative aimed at reducing the cost of living, promoting business development, and enhancing economic efficiency across the nation.

The reforms, signed into law on June 26, 2025, are encapsulated in four new pieces of legislation: the Nigeria Tax Act (NTA), Nigeria Tax Administration Act (NTAA), Nigeria Revenue Service Act (NRSA), and the Joint Revenue Board Act (JRBA), collectively known as the Acts. These laws introduce major reforms in tax management and financial regulations throughout Nigeria.

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Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, stated that the removal of these charges will streamline tax procedures, decrease compliance costs, and relieve unnecessary financial pressures on millions of citizens and businesses.

A key aspect of the reforms is the complete elimination of the ₦50 EMTL, which was previously imposed on electronic transactions exceeding ₦10,000. This charge impacted millions of daily transactions, and its removal is anticipated to promote greater financial inclusion, support digital payments, and reduce the costs associated with low-value transfers for individuals and small enterprises.

Additionally, stamp duty charges on salary payments will be abolished, allowing employees to receive their full salaries without any deductions beginning in January 2026. Small and medium enterprises (SMEs) will also benefit from lowered administrative costs.

Investors will find relief as stamp duties on transactions involving treasury bills, government bonds, and shares will be eliminated, making investment more accessible and encouraging broader participation in the capital market.

The government has also repealed stamp duties on documentation needed for stock or share transfers, thus streamlining paperwork and compliance for market participants.

Furthermore, the ₦50 charge on transfers between accounts within the same bank will be removed, allowing customers to transfer funds between personal or related accounts without incurring additional costs, thereby improving liquidity management for both individuals and businesses.

According to Oyedele, these changes are based on new provisions within the Nigeria Tax Act 2025, which provides clear exemptions from stamp duties and reverses previous financial regulations established by the Stamp Duties Act and the Finance Act of 2020.