Nigerians to Pay More for Bank Transfers from 2026: Here’s Why
- Beginning January 2026, Nigerians wishing to make online transfers will pay more to execute their transactions
- This is because the Nigerian government is bringing back an old policy that allows banks, fintechs and other platforms to deduct at source
- The increase follows a major policy shift buried in Nigeria’s new tax framework
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
From January 2026, Nigerians will begin to pay more each time they send money through bank apps and fintech platforms.
A simple transfer of ₦50,000 could attract up to ₦100 in total charges, not because banks are hiking prices on their own, but because the federal government has changed how electronic transfers are taxed.
Source: Getty Images
EMTL is gone, stamp duty is back
The increase follows a major policy shift buried in Nigeria’s new tax framework, one that quietly alters who pays for digital transactions and how often they pay.
In 2020, the government replaced traditional stamp duty on electronic transfers with the Electronic Money Transfer Levy (EMTL).
Under EMTL, a flat ₦50 charge was applied to transfers of ₦10,000 and above, but it was deducted from the amount received, not what was sent. For most users, it felt almost invisible.
Five years later, that system is being reversed. Under the Nigeria Tax Act 2025, EMTL has been renamed and expanded back into stamp duty.
The scope now covers chargeable instruments such as electronic receipts, tax stamps, certificates, and digital tagging.
What changes for everyday transfers
According to the government, compliance with stamp duty regulations will be strictly enforced to ensure stronger collections over the medium term.
The practical result is simple: the sender, not the receiver, will now pay the ₦50 stamp duty on every qualifying transfer.
Today, most banks already charge transfer fees. Customers typically pay ₦10 for transfers below ₦5,000, ₦25 for transfers between ₦5,001 and ₦50,000, and ₦50 for transfers above ₦50,000.
From 2026, stamp duty will sit on top of these charges. Sending ₦10,000 or more will now cost between ₦75 and ₦100 per transaction, depending on the amount.
While recipients will receive the full value of the transfer, senders will shoulder the higher cost.
What was once a one-off deduction on received funds becomes a repeated expense every time money is sent.
Impact on businesses, PoS agents, and fintechs
According to a report by TechCabal, for businesses, the change removes the awkward situation where customers receive payments already reduced by ₦50.
PoS agents also benefit slightly, as transfers above ₦10,000 will no longer attract deductions on incoming funds.
However, the overall burden shifts clearly to transaction initiators. For fintech platforms such as OPay, PalmPay, and Moniepoint, which built rapid adoption on cheap or free transfers, the extra charge weakens a key selling point.
Digital payments grew in Nigeria because they were fast, simple, and affordable. Each added fee chips away at that advantage.
Why the government is doing this
EMTL has become a reliable source of non-oil revenue. In 2024, it generated ₦219.11 billion, exceeding projections. Between January and July 2025 alone, collections had already reached over 92 per cent of the full year target.
Growth accelerated after fintech platforms were fully brought into the levy net in late 2024. With the expanded stamp duty regime, the government is projecting ₦456.07 billion in revenue for 2026, rising steadily to over ₦750 billion by 2028.
Revenue sharing is also changing. The federal government’s share drops from 15 per cent to 10 per cent, while states now receive 55 per cent, strengthening subnational finances.
Small fees, big consequences
An extra ₦50 per transfer may seem insignificant on its own. But multiplied across millions of daily transactions, it adds up to hundreds of billions in public revenue.
At the same time, it steadily erodes affordability for Nigerians who depend on digital payments to move money quickly and cheaply.
Source: Getty Images
From 2026, convenience remains, but it will come at a higher price, one transfer at a time.
Moniepoint, OPay, PalmPay, banks raise cost of terminals
Legit.ng earlier reported that the cost of Point-of-Sale (PoS) terminals in Nigeria has skyrocketed between 2023 and 2025, climbing by up to 100% for advanced devices and at least 30% for entry-level models.
The surge is driven by rising inflation, foreign exchange volatility, and higher logistics costs, reshaping the dynamics of Nigeria’s fast-growing agency banking sector.
Entry-level PoS machines that once cost between ₦15,000 and ₦20,000 now sell for about ₦21,500. More sophisticated Android and smart terminals, previously priced between ₦30,000 and ₦40,000, now go for between ₦62,000 and ₦85,000.
Source: Legit.ng
