From January 2026, sending money through a bank or fintech app in Nigeria will no longer be as simple or as cheap as it is today.
A transfer of ₦50,000 ($34.14) could cost ₦100 in fees, not because banks suddenly raised their charges, but because the government is shifting the cost of electronic transfers from recipients to senders.
This change comes as part of a broader tax and revenue reform strategy, reintroducing stamp duty five years after it was replaced by the Electronic Money Transfer Levy (EMTL). The reform is poised to reshape the digital payments landscape, consumer behaviour, and business models, while providing a new source of government revenue.
Here, we will explain the mechanics, and practical implications of this policy, and what Nigerians need to know to prepare for the changes.
What You Should Know About the 2025 Tax Reform
Under the Nigeria Tax Act 2025, the EMTL has been renamed stamp duty and its scope broadened. It now applies to:
- Electronic money transfers and receipts
- Tax stamps and tagging of instruments
- Certificates and other chargeable instruments
The most important change, however, is the shift in responsibility: from 2026, the sender of the money will bear the charge, rather than the recipient.
“Compliance with the approved Regulations governing the administration of Stamp Duties will be enforced to ensure full collections over the medium term,” the Nigerian government said.
This means that what was once a small, almost invisible deduction on money received will become a visible, recurring expense on every transfer sent.
How the Changes Will Affect Everyday Transfers
Currently, bank transfer fees in Nigeria are modest:
- ₦10 for transfers below ₦5,000
- ₦25 for transfers between ₦5,001 and ₦50,000
- ₦50 for transfers above ₦50,000
From 2026, sending ₦10,000 or more will now cost between ₦75 and ₦100, depending on the amount. While the recipient will receive the full sum, the sender bears an additional ₦50 stamp duty, which is layered on top of existing bank or fintech fees.
For individual users, this will mean:
- A small but recurrent expense for each transfer
- Potential adjustments in how often they send money, especially for smaller or repeated payments
For businesses, the shift eliminates the need to deduct an extra ₦50 from received payments. For PoS agents, who often include all charges in withdrawal fees, the change removes the previous deduction on transfers above ₦10,000.
However, for fintechs like OPay, PalmPay, and Moniepoint, which built growth on cheap or free transfers, the extra cost may influence customer behaviour, forcing platforms to:
- Adjust pricing models
- Offer promotions or cashback to retain users
- Reconsider marketing strategies for high-volume transfers
Why This Matters for Fintech and Digital Payments
Nigeria’s digital payments sector grew rapidly due to three main factors:
- Speed and convenience – transfers are nearly instant
- Affordability – fees were minimal or invisible
- Accessibility – mobile banking and fintech apps brought financial services to millions outside urban centres
The reintroduction of stamp duty as a sender-borne cost marks a significant shift in Nigeria’s digital payments ecosystem. Fintech platforms that previously relied on low-cost or free transfers to attract users may face pressure to restructure their pricing models.
The additional fee could affect transaction volumes, particularly for high-frequency users and smaller transfers, potentially slowing the rapid adoption of digital payments that the sector has enjoyed over the past decade.
Industry analysts suggest that fintechs will need to innovate to retain competitiveness and maintain customer engagement. This could include introducing bundled services, tiered subscription models, or promotional incentives to offset the visible transfer cost for users.
Beyond pricing, the change may influence consumer behaviour more broadly, including preferences for payment channels, frequency of transfers, and the use of digital wallets versus traditional bank accounts.
Experts say fintech companies must balance compliance with the new regulation against user retention and trust, while policymakers will need to monitor the impact on financial inclusion and the sector’s long-term growth trajectory.
How Consumers Can Prepare
- Budget for the additional cost – factor in ₦50 for every transfer above ₦10,000.
- Plan transfers efficiently – consider consolidating payments where possible to minimise repeated fees.
- Compare platforms – fintech apps and banks may compete on total transfer costs.
- Stay informed – awareness of new regulations can prevent surprises and help manage personal and business finances.
Implications for Businesses and SMEs
For small businesses, gig workers, and SMEs:
- The sender-pays model adds a small operational cost for each transaction.
- Businesses that frequently pay suppliers, employees, or service providers via digital transfer will feel the impact cumulatively.
- Some may pass costs to customers, while others absorb them, affecting margins.
For fintechs:
- This may reshape growth strategies – free or cheap transfers were a key user acquisition tool.
- Platforms may explore tiered subscription models, rewards, or bundled fees to retain customers.
Behavioural and Economic Effects
Analysts predict several behavioural shifts:
- Consumers may send less frequently to minimise fees.
- Cash withdrawals may rise as people seek to avoid digital charges, partially undermining cashless policy goals.
- Fintech engagement may shift to platforms offering incentives or lower fees.
For the government, these effects are weighed against substantial revenue gains, which support public spending and fiscal stability.
For Nigerians, experts advise to prepare, plan, and stay informed. While the fee may be small individually, it will influence daily financial behaviour, business operations, and the economics of digital transactions across the country.
By understanding the mechanics, and implications of the reform, Nigerians can navigate the changes proactively, while fintechs and banks adjust their strategies to maintain affordability, convenience, and trust in digital payments.
Talking Points
This single policy change alone positions stamp duty as a major factor shaping the behaviour of individuals, businesses, and fintechs across Nigeria, particularly as it turns a previously invisible cost into a visible, recurring expense for every transfer above ₦10,000.
At Techparley, we see how this reform could influence digital finance adoption, prompting consumers to reconsider transfer frequency, fintech pricing models, and payment habits, while encouraging platforms to innovate around affordability and incentives.
The integration of the fee into daily transfers highlights the importance of financial literacy and awareness, as users and businesses alike must now plan for the additional cost in household budgets, business operations, and fintech growth strategies.
Adoption and continued trust in digital payments will depend on how fintechs and banks communicate the changes, provide alternative solutions, and ensure convenience is maintained despite higher costs.
As Nigeria scales the new stamp duty regime, there is an opportunity for strategic interventions, such as fintech incentives, regulatory guidance, and public education campaigns to smooth the transition, maintain financial inclusion, and secure long-term revenue growth for governments without stifling innovation in the payments sector.
——————-
Bookmark Techparley.com for the most insightful technology news from the African continent.
Follow us on Twitter @Techparleynews, on Facebook at Techparley Africa, on LinkedIn at Techparley Africa, or on Instagram at Techparleynews.
