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As Nigerians adjust to sweeping fiscal reforms under the Nigerian Tax Act 2025, a subtle but significant change is reshaping everyday banking transactions: who bears the ₦50 Stamp Duty on electronic transfers.
A customer notice from First Bank of Nigeria has brought clarity to a question many account holders are already asking, does the sender or the receiver pay?
The Short Answer: The Sender Pays
Effective 1 January 2026, the long-standing Electronic Money Transfer Levy (EMTL) on transfers of ₦10,000 and above has been replaced with a flat ₦50 Stamp Duty. Crucially, the burden of payment has shifted.
Under the new rule:
- The ₦50 Stamp Duty is now deducted from the sender’s account, not the beneficiary’s.
- This marks a clear departure from the previous EMTL regime, where the charge was typically taken from the receiver of the funds.
Why This Change Matters
For years, recipients, especially small business owners and individuals receiving frequent transfers, have complained about unexplained deductions reducing the exact amounts sent to them.
By placing the charge on the sender, regulators appear to be responding to concerns around fairness, transparency, and predictability in digital payments.
The new approach ensures that:
- Beneficiaries receive the full amount sent.
- Senders are aware upfront of the true cost of the transaction.
- Banks can implement a more straightforward deduction model aligned with global best practices.
When Does the ₦50 Stamp Duty Apply?
According to First Bank’s notice, the Stamp Duty applies to:
- Electronic transfers of ₦10,000 and above, or their foreign currency equivalent.
- The charge is one-off per qualifying transaction, not cumulative.
Transactions Exempt from the ₦50 Charge
Not all transfers will attract the Stamp Duty. Exemptions include:
- Transfers below ₦10,000
- Salary payments
- Intra-bank self-transfers, where customers move funds between their own accounts within the same bank
These exemptions are expected to protect low-value transactions and routine personal account management from additional costs.
What Customers Should Watch Out For
As banks begin full implementation, customers are advised to:
- Review transfer confirmations carefully to see the ₦50 deduction reflected on the sender side
- Adjust bulk or frequent transfers accordingly
- Expect similar notices from other banks, as the policy applies industry-wide, not to First Bank alone
Bigger Picture: A Quiet but Impactful Reform
While ₦50 may seem modest, the policy shift reflects a broader effort by government and regulators to standardise digital transaction charges, reduce disputes between senders and receivers, and improve trust in Nigeria’s electronic payment system.
In practical terms, the debate over “Who pays?” is now settled. From 2026 onward, if you send ₦10,000 or more electronically, the ₦50 Stamp Duty is yours to pay, not the recipient’s.
The post Stamp Duty Replaces EMTL: Sender to Bear ₦50 Charge on Bank Transfers appeared first on Techeconomy.
