In a major relief for Nigerians, several standard banking charges will be removed under President Bola Ahmed Tinubu’s whole Tax Reform, set to take effect in January 2026. The new tax laws, signed on 26 June 2025, aim to drive economic growth, improve the business environment, and reduce the financial burden on everyday Nigerians, small businesses, and low-income earners.
The comprehensive reforms comprise the Nigeria Tax Act (NTA), Nigeria Tax Administration Act (NTAA), Nigeria Revenue Service Act (NRSA), and the Joint Revenue Board Act (JRBA), collectively referred to as the Acts.
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5 Bank Charges Nigerians Will No Longer Pay
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, revealed the five key banking charges that will be abolished:
1. Electronic Money Transfer Levy
Currently, banks charge ₦50 for every electronic transfer under ₦10,000, a fee that affects millions of customers making daily small transactions. As of January 2026, this levy will be abolished entirely, making small online transfers, whether to family, friends, or businesses, free of charge. This move is expected to boost digital financial inclusion and encourage the use of mobile banking and fintech platforms.
2. Stamp Duty on Salary Payments
Employers and employees alike have been paying stamp duty on salary transfers, adding an extra cost to monthly payrolls. Under the new law, this fee will no longer apply, meaning salary credits will incur no additional charges, easing the financial burden for both workers and businesses. This change particularly benefits small businesses and low-income earners who are more sensitive to transactional fees.
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3. Stamp Duty on Government Securities and Share Transfers
Investments in government bonds, securities, and shares currently carry stamp duty charges, discouraging small-scale investors. From January 2026, all transfers of government securities or shares will be exempt, making investment more attractive and accessible to ordinary Nigerians. This reform is expected to encourage broader participation in the financial markets.
4. Stamp Duty on Documents for Stocks and Shares Transfers
Apart from the transactions themselves, the documentation for transferring stocks and shares also attracts stamp duty, further increasing costs for investors. With the new tax laws, these documents will no longer incur fees, reducing administrative costs for stock market participants and simplifying investment processes.
Under the Stamp Duties Act (Cap S8 LFN 2004), the introduction of the Electronic Money Transfer Levy (EMTL) via the Finance Act 2020 states there is a levy of ₦50 on electronic receipts/transfers of ₦10,000 or more. Furthermore, the Nigeria Tax Act, 2025 (NTA 2025) also has a section titled “Exemption from stamp duties” under Part III.
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5. Intra-Bank Transfers
Transfers between accounts within the same bank have historically been charged ₦50 per transaction, a fee that adds up for individuals and businesses conducting frequent internal transfers. The new tax law eliminates this charge, allowing customers to move funds within their accounts without extra costs. This is expected to improve cash flow management for businesses and make banking more user-friendly for everyone.
Other Tax Exemptions
The new tax framework also extends relief to goods and services. Items such as basic food products, rent, education and health services, pharmaceutical products, agricultural inputs, disability aids, baby and sanitary products, transport, land and buildings, and electric vehicles be exempt from VAT or will attract a 0% rate.
Additionally, small businesses with a turnover not exceeding ₦100 million will be exempt from charging VAT. VAT on diesel, petrol, solar equipment, and certain humanitarian supplies will remain suspended or exempt. With these new reforms, Nigerians can look forward to a more transparent, fair, and cost-effective banking experience starting January 2026.
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