Five Bank Charges Nigerians Will No Longer Pay Starting January 2026

Starting January 1, 2026, millions of Nigerians will experience significant savings on everyday banking transactions. The Federal Government, through the newly enacted Nigeria Tax Act 2025 and related laws, has abolished five key bank charges that have long burdened individuals, employees, small businesses, and investors.

These reforms, announced by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, reverse provisions from the old Stamp Duties Act and Finance Act 2020. The changes aim to reduce living costs, boost financial inclusion, encourage investments, and support economic growth under President Bola Tinubu's administration.

Why These Bank Charges Are Being Abolished in January 2026

The abolition stems from four landmark tax laws signed in June 2025: Nigeria Tax Act (NTA), Nigeria Tax Administration Act (NTAA), Nigeria Revenue Service Act (NRSA), and Joint Revenue Board Act (JRBA). These laws introduce explicit exemptions to eliminate unnecessary fees, promote digital transactions, lower business costs, and make Nigeria's financial system more competitive.

Full List: 5 Bank Charges Nigerians Will Stop Paying from January 2026

1. N50 Electronic Money Transfer Levy (EMTL) on Transfers Below N10,000

Currently, banks deduct N50 as Electronic Money Transfer Levy on all electronic receipts of N10,000 and below. This affects millions of small daily transfers for airtime, food, transport, and family support.

To ease the burden on low-income earners and promote cashless payments. Removing this levy encourages financial inclusion and reduces costs for everyday Nigerians.

2. Stamp Duty on Salary Payments and Transfers

A stamp duty currently levied on salary payments and payroll transfers. This charge will be completely removed for all salary payments.

This is a double-benefit reform. Employees will be able to receive their full salaries without any deductions for this duty, leading to a slight but meaningful increase in take-home pay. Employers, particularly small and medium-sized enterprises (SMEs), will see a reduction in their administrative and operational costs, making it cheaper and easier to run a business and pay staff.

Reason for Abolition: Workers deserve their full take-home pay without hidden deductions. This also lowers payroll processing costs for businesses, especially SMEs, allowing higher net salaries and improved cash flow.

3. Stamp Duty on Treasury Bills, Government Bonds, and Shares

Investors pay stamp duties when buying or selling government securities like treasury bills, bonds, or shares. These duties will be abolished on all transfers of government securities and shares.

This move is designed to promote investment in the capital markets. By reducing the transaction costs associated with buying and selling securities, the government aims to make investing more attractive and accessible. This could stimulate greater participation in the financial markets from a wider range of Nigerians, from retail investors to large institutions.

4. Stamp Duty on Stock and Share Transfer Documents

A separate stamp duty on the physical or digital documents used to process the transfer of stocks and shares.

This goes hand-in-hand with the previous point. Removing this charge further reduces the compliance and administrative costs for investors and capital market operators. It simplifies the process of participating in the stock market, fostering a more efficient and transparent investment ecosystem.

5. N50 Charge on Intra-Bank Transfers (Own Accounts or Same Bank)

Some banks impose N50 stamp duty or transfer fees when moving money between personal accounts in the same bank.

Customers will enjoy the freedom to move funds between their personal accounts, for example, from a savings account to a current account without incurring an extra cost. This improves personal cash flow management and provides greater flexibility for both individuals and businesses to manage their liquidity efficiently .

Impact of These Changes on Nigerians and the Economy

These exemptions will save households hundreds of naira monthly on routine transactions. Small businesses benefit from lower operational costs, while investors face fewer hurdles in wealth creation.

Overall, the reforms align with goals to grow Nigeria's GDP, reduce poverty, and build a fairer tax system. Banks must comply fully from January 2026, with potential penalties for violations.

The Reasons Behind the Removal of These Charges

Many of these charges, particularly the EMTL on small transfers and the stamp duty on salaries, are regressive, meaning they take a larger percentage of income from low-earning individuals and small businesses. Their removal directly lowers the cost of everyday financial activities and business operations.

By leaving more money in the hands of consumers and businesses, the reform aims to boost spending and investment. Furthermore, by reducing costs on investment instruments, the government hopes to activate the capital market, encouraging investments that can fuel economic expansion.

The old framework, with its multiple stamp duties and levies on essential transactions, was seen as cumbersome and inefficient. This reform streamlines the tax administration system, eliminating burdensome charges and creating a more transparent and effective fiscal environment.

Broader Context of the 2026 Financial Landscape

The banking sector in Nigeria is undergoing significant changes around the 2026 timeframe. While the removal of these charges is a positive development, it is important to be aware of other shifts.

The Central Bank of Nigeria (CBN) has set a March 2026 deadline for banks to recapitalize, meaning they must increase their capital bases to strengthen the financial system. Some banks, like Standard Chartered Bank Nigeria, are also restructuring their services and have announced plans to close certain personal banking accounts that do not meet a new minimum balance requirement of ₦7.5 million by February 2026.

These are separate, bank-specific commercial decisions and are not connected to the government's tax policy.