Millions of Nigerians will experience significant financial relief from January 2026 as five frequently applied bank charges are set to be abolished under the Federal Government’s sweeping tax reform agenda.
The measures are part of President Bola Ahmed Tinubu’s comprehensive fiscal overhaul, signed into law on June 26, 2025, aimed at easing the cost of doing business, stimulating economic growth, and supporting households and small enterprises.
The reforms are captured in four newly enacted laws — 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.
According to Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, the changes are expected to simplify tax administration and eliminate unnecessary financial burdens on citizens.
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The N50 Electronic Money Transfer Levy (EMTL), charged on transfers above N10,000, will be scrapped entirely. This levy affects millions of electronic transactions daily. Its removal is expected to deepen financial inclusion, encourage digital payments and reduce the cost of low-value transfers for individuals and businesses.
Employees and employers currently bear stamp duty charges on salary transfers. From January 2026, these charges will no longer apply, allowing workers to receive full salaries while reducing administrative costs for businesses, especially small and medium-sized enterprises.
Investors in treasury bills, government bonds, and shares currently pay stamp duties on their transactions. These will be abolished, making capital market investments more affordable and encouraging wider participation among Nigerians.
Beyond transactional duties, stamp charges on documents used for processing stock or share transfers will also be removed. This simplifies investment documentation and reduces compliance costs for capital market operators.
The N50 charge on transfers between accounts within the same bank will be discontinued. Customers will be able to move funds between personal or related accounts without incurring extra fees, improving cash flow management for individuals and businesses.
Oyedele noted that these reforms stem from new provisions in the Nigeria Tax Act 2025, which introduces explicit exemptions from stamp duties, reversing earlier rules under the Stamp Duties Act and the Finance Act 2020.
(Tribune)
