In a blunt move that could ease the financial drain for millions of Nigerians, the Federal Government has announced that five major bank charges will be completely eliminated starting January 1, 2026. The change is part of President Bola Ahmed Tinubu’s sweeping tax reform, signed into law on June 26, 2025.
Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms Committee, broke the news via his official channels, spelling out a significant cost-cutting package targeting banking fees long considered a nuisance to everyday Nigerians.
What’s Getting Axed — And Why It Matters
Here’s the rundown of the five bank charges that will disappear from 2026:
1. Electronic Money Transfer Levy (EMTL)
The flat ₦50 charge on electronic transfers above ₦10,000 will be scrapped. Millions of small digital transactions currently taxed under EMTL will now be free of that extra cost, encouraging more Nigerians to use digital channels confidently.
2. Stamp Duty on Salary Payments
Both employers and workers have been quietly losing money to stamp duty on salary transfers. From 2026, this will end — workers get their full salaries, and businesses, especially SMEs, save on administrative overhead.
3. Stamp Duty on Government Securities & Share Transfers
Investors in government bonds, treasury bills, and shares will no longer pay stamp duty on their transactions. This lowers entry barriers for ordinary Nigerians who want to participate in the capital markets.
4. Stamp Duty on Stock/Share Transfer Documents
Beyond the transactions themselves, even the documents used for processing stock or share transfers have carried fees. That charge disappears too, reducing compliance costs for market operators.
5. Intra-Bank Transfer Fee
The irritating ₦50 fee for transferring money between accounts within the same bank is gone. Individuals and businesses can now shuffle funds without paying for the privilege.
The Legal Backdrop
These changes are embedded in the Nigeria Tax Act, 2025, one of four tax-reform laws passed in mid-2025. Others include the Nigeria Tax Administration Act, the Nigeria Revenue Service Act, and the Joint Revenue Board Act.
The Nigeria Tax Act replaces provisions under the old Stamp Duties Act and creates explicit exemptions for electronic transfers, salary payments, intra-bank transfers, and securities-related documentation. These exemptions form the basis for the abolished charges.
Bigger Picture: This Goes Beyond Banking
The elimination of these bank charges is part of a larger 40-item economic relief package for low-income earners, SMEs, and average taxpayers.
Highlights include:
- Personal Income Relief: Individuals earning at or below the national minimum wage are exempt from personal income tax. Income up to ₦1.2 million annually also enjoys relief.
- VAT Reforms: Essential items like basic foodstuffs, rent, healthcare, education, agricultural inputs, baby products, sanitary items, public transport, and electric vehicles will attract 0% VAT or full exemption.
- SME Support: Small companies with turnover below ₦100 million will no longer be required to charge VAT.
Why This Is a Big Deal
Financial inclusion boost: Removing the EMTL could encourage more digital transactions, especially for low-value transfers. People may now freely send amounts without strategically trying to avoid fees.
Payroll efficiency: Workers keep more of their wages, and employers streamline their payment processes.
Investment accessibility: Eliminating stamp duties on securities reduces the cost of entering the capital market — a win for everyday Nigerians trying to build wealth.
Smoother cash flow: Free intra-bank transfers make personal and business cash management easier.
But Challenges Remain
Revenue gap: The government previously earned billions from EMTL, especially after bringing fintechs under its umbrella. Eliminating the levy leaves a revenue gap that must be addressed elsewhere.
Implementation hurdles: Banks will need to update systems, and regulators must ensure compliance. Nigerians need to see the disappearance of these charges not just on paper but on their statements.
Public education: Reform leaders have raised concerns about tax misinformation spreading online. Accurate awareness is critical, or the reforms may not reach the people who should benefit most.
The Outlook
Come January 2026, Nigerians should feel tangible financial relief — not promises, but actual reductions in recurring bank charges. With legal backing in place and explicit exemptions written into law, the stage is set for a more transparent, less punitive financial system.
If executed effectively, these reforms could reshape how Nigerians interact with banks, invest, and manage daily expenses. For once, the system may finally be bending in favor of the people who fund it.