Nigerians are set to experience significant financial relief as five major bank charges will be scrapped beginning January 2026, under President Bola Ahmed Tinubu’s comprehensive Tax Reform agenda.
According to Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, these changes form part of the government’s efforts to reduce the cost of financial transactions, promote inclusion, and create a fairer business environment for individuals and enterprises.
The reforms are embedded in four landmark legislations — the Nigeria Tax Act (NTA), Nigeria Tax Administration Act (NTAA), Nigeria Revenue Service Act (NRSA), and Joint Revenue Board Act (JRBA) — collectively known as the Acts.
5 Bank Charges Nigerians Will No Longer Pay
1. Electronic Money Transfer Levy (₦50 Charge)
Currently, a ₦50 levy applies to every electronic transfer of ₦10,000 or more — a burden on millions of Nigerians conducting small daily transactions.
From January 2026, this fee will be completely abolished, making small transfers — whether for family, business, or personal use — free of charge.
This move is expected to boost financial inclusion and encourage the use of digital banking and fintech platforms.
2. Stamp Duty on Salary Payments
Both employers and employees have long borne the cost of stamp duties on salary transfers.
With the new law, this extra cost disappears, ensuring that monthly salaries are paid without deductions, easing the pressure on workers and small businesses.
3. Stamp Duty on Government Securities and Share Transfers
Currently, investing in government bonds and shares attracts stamp duty fees, discouraging small investors.
Beginning in 2026, these investment transfers will be exempt, making stock and bond markets more accessible and encouraging Nigerians to save and invest more.
4. Stamp Duty on Documents for Stock and Share Transfers
In addition to the transactions themselves, the documents required for stock and share transfers have also attracted stamp duty.
The reform abolishes this cost, simplifying capital market participation and reducing administrative overheads for investors.
5. Intra-Bank Transfer Fees
Transferring funds between accounts within the same bank has historically attracted a ₦50 charge per transaction.
Under the new rule, this fee will be eliminated, making internal transfers completely free — a big win for both businesses and individuals who manage multiple accounts.
Other Tax Exemptions and Benefits
Beyond banking, the new tax framework delivers broader relief across several sectors.
Essential goods and services such as basic food items, rent, education, healthcare, pharmaceuticals, agricultural inputs, disability aids, baby and sanitary products, public transport, and electric vehicles will either be VAT-exempt or attract a 0% VAT rate.
Small businesses with annual turnovers below ₦100 million will be exempt from charging VAT.
Energy-related items such as diesel, petrol, solar equipment, and certain humanitarian supplies will remain VAT-free or suspended.
These sweeping reforms mark a bold step toward economic fairness, cost efficiency, and increased citizen welfare, laying the foundation for a more inclusive and transparent financial ecosystem in Nigeria.
