By Emeka Amaefula
BANKS TO SCRAP EMTL AND STAMP DUTIES AS FG UNVEILS MAJOR 2026 TAX REFORMS
The Federal Government has approved the removal of five common bank charges under a sweeping tax reform programme set to take effect in January 2026. The move, designed to ease financial pressure on citizens and streamline tax administration, is anchored on four newly enacted laws collectively referred to as “the Acts”: the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service Act and the Joint Revenue Board Act.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, explained that the reforms eliminate charges regarded as outdated and burdensome. Chief among these is the ₦50 Electronic Money Transfer Levy (EMTL) previously imposed on electronic transfers above ₦10,000. The levy, which affected millions of transactions daily, will now be abolished to promote digital payments, deepen financial inclusion and lower transaction costs for individuals and small businesses.
The government has also approved the removal of stamp duty charges on salary payments, a longstanding deduction borne by both employers and employees. With the new policy, workers will receive their full wages while businesses—especially small and medium enterprises—will save on administrative and processing expenses.
Capital market investors stand to benefit from the scrapping of stamp duties on treasury bills, government bonds and share transactions. The removal of stamp charges on documents required for stock and share transfers is also expected to simplify paperwork and reduce compliance costs for brokers and investors, making investment participation more attractive.
Additionally, the ₦50 charge on transfers between accounts within the same bank has been dropped. This allows customers to move funds between personal or related accounts without extra fees, thereby improving cash-flow management.
Oyedele noted that these reforms stem from new provisions in the Nigeria Tax Act 2025, which introduce explicit exemptions that override previous requirements under the Stamp Duties Act and the Finance Act 2020. According to him, the changes reflect the government’s commitment to modernising Nigeria’s tax framework and eliminating charges that no longer serve their intended purpose.
—————Emeka Amaefula —-+234(0)8111813069—-
