Federal Government Abolishes Five Major Bank Charges From January 2026: What It Means for Nigerians
From January 2026, millions of Nigerians will begin to experience tangible financial relief as the Federal Government phases out five widely resented bank charges. The announcement, made by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, marks a major step in President Bola Ahmed Tinubu’s fiscal restructuring agenda—an agenda designed to simplify taxation, support businesses, and ease everyday financial stress on citizens.
These policy changes are embedded in four new laws—the Nigeria Tax Act (NTA), Nigeria Tax Administration Act (NTAA), Nigeria Revenue Service Act (NRSA), and the Joint Revenue Board Act (JRBA). Together, they form the legal foundation of Nigeria’s most ambitious tax reform in decades, collectively known simply as “the Acts.”
One of the most impactful reforms is the total removal of the ₦50 Electronic Money Transfer Levy (EMTL). For years, this charge was applied to transfers above ₦10,000, affecting millions of daily transactions. Its elimination is expected to boost digital payments, lower the cost of sending money, and make Nigeria’s cashless economy more accessible to low-income earners and small businesses.
Also gone are stamp duty charges on salary transfers. Until now, employees lost part of their income to deductions applied whenever salaries were processed, while employers—particularly SMEs—bore additional administrative burdens. Starting in 2026, workers will receive their full wages without any stamp-duty-related deductions, and businesses will benefit from simplified payroll processes.
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Investors will also feel the impact. Stamp duties currently charged on the purchase of treasury bills, government bonds, and shares will be abolished. These fees, often seen as a barrier to the capital market, made small investments more expensive and discouraged new investors. Their removal is expected to expand participation in financial markets, lower transaction costs, and strengthen investor confidence.
Similarly, documentation used in transferring stocks or shares will no longer attract stamp duties. The goal is to simplify investment procedures and reduce compliance costs for brokers, registrars, and capital market operators—potentially stimulating higher trading volumes and a more dynamic market environment.
Another widely criticized charge—the ₦50 fee on transfers between accounts within the same bank—will also be discontinued. This fee discouraged seamless movement of funds between personal accounts and business accounts. Its elimination will improve liquidity management for individuals, entrepreneurs, and SMEs, allowing them to move money without being penalized for basic internal transfers.
According to Oyedele, these reforms are enabled by new provisions inside the Nigeria Tax Act 2025, which introduces explicit exemptions from stamp duties and overrides prior frameworks found in the Stamp Duties Act and the Finance Act 2020. The intention, he emphasized, is to remove outdated, duplicate, or burdensome taxes trapping citizens and businesses in unnecessary costs.
Public reactions, however, remain mixed. Supporters applaud the policy as a long-overdue relief for Nigerians who have faced years of rising fees imposed by banks and regulatory agencies. They view the initiative as evidence that the administration is taking steps to reduce financial pressure and improve the ease of doing business.
Critics, on the other hand, remain skeptical. Many Nigerians question whether banks will truly comply or whether the government will quietly introduce new charges elsewhere to offset revenue losses. Others argue that eliminating small levies is not enough, insisting that insecurity, inflation, and unemployment remain the most pressing issues needing urgent government attention.
Despite the divided opinions, the removal of these five charges represents a significant structural shift in Nigeria’s financial landscape. It signals a move toward clearer, simpler, and more citizen-friendly financial governance—one that acknowledges the economic hardship facing households and the need to reform outdated revenue-collection systems.
Whether this policy becomes a celebrated turning point or another unfulfilled promise will depend heavily on implementation, monitoring, and the banks’ willingness to comply. But for now, Nigerians can prepare for a future where routine transactions cost less—and financial breathing space becomes just a bit wider.