Nigerians to Stop Paying Five Common Bank Charges from January 2026

Beginning January 1, 2026, Nigerians will no longer pay several common bank charges as part of the Federal Government’s comprehensive tax reform, which is scheduled to take full effect next year.

The reform, signed into law by President Bola Ahmed Tinubu on June 26, 2025, represents a significant shift in Nigeria’s fiscal and economic framework. It forms part of the government’s broader Tax Reform Agenda, which seeks to stimulate economic growth, reduce the cost of doing business, and enhance transparency in tax administration across federal, state, and local levels.

The legislative package, known collectively as “the Acts,” includes four major 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 are expected to modernize Nigeria’s tax system and create a fairer environment for citizens, particularly low-income earners, small businesses, and average taxpayers.

List of Bank Charges to Be Abolished

According to Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, five major banking charges will be scrapped beginning January 2026. Oyedele shared the update in a post via X (formerly Twitter), outlining the charges that will no longer apply to Nigerian bank customers.

These include:

Electronic Money Transfer Levy (EMTL):
The ₦50 levy previously charged on electronic transfers below ₦10,000 will be completely removed.

Stamp Duty on Salary Payments:
All salary-related transactions will now be exempt from stamp duty, offering relief to millions of Nigerian workers.

Stamp Duty on Government Securities or Share Transfers:
Transfers involving government bonds, shares, and other securities will no longer attract stamp duty charges.

Stamp Duty on Stock and Share Documents:
Documents used for transferring stocks and shares will be exempt from stamp duty, reducing costs for investors and capital market operators.

Intra-Bank Transfers:
Self-transfers within the same bank account will no longer attract the ₦50 electronic transfer levy.

A section of the new tax law explicitly states:

“Electronic transfer or electronic receipts of money below ₦10,000 or its equivalent in other currencies, transfers for salary payment, and intra-bank self-transfers are exempted.”

Oyedele explained that these changes were introduced to reduce the financial pressure on Nigerians, encourage digital banking adoption, and foster a cashless economy.

Broader Tax Exemptions Introduced

Beyond the banking sector, the new tax framework provides several Value Added Tax (VAT) exemptions and zero-rated categories to cushion the effect of inflation and improve citizens’ welfare.

The following goods and services are now zero-rated or VAT-exempt, attracting 0% VAT:

Basic food items

Rent payments

Educational and healthcare services

Pharmaceutical products

Agricultural inputs

Disability aids, baby products, and sanitary items

Transportation services

Sales of land and buildings

Electric vehicles

Additionally, small businesses with annual turnover below ₦100 million are exempt from charging VAT, offering significant relief to micro, small, and medium enterprises (MSMEs).

VAT exemptions will also continue to apply to diesel, petrol, solar energy equipment, and humanitarian supplies, which remain suspended or exempt under current government policies.

CBN Banking Charge Guidelines Remain in Effect

Earlier in 2025, the Central Bank of Nigeria (CBN) released a revised Guide to Bank Charges, detailing permissible fees for financial institutions.

Under this guideline:

Cash deposits above ₦500,000 attract a 2% charge for individual accounts.

Cash withdrawals above ₦500,000 attract a 3% charge.

However, these fees will now be reviewed in light of the government’s tax reforms, which aim to simplify financial transactions, eliminate overlapping charges, and promote accountability within the banking system.

Reform Expected to Boost Economic Confidence

Economic analysts believe the new tax regime will enhance confidence in Nigeria’s financial system, particularly among small and medium-scale enterprises (SMEs) that previously struggled under multiple levies and transaction charges.

Mr. Oyedele emphasized that the reform aligns with global best practices in tax and fiscal management, adding that it is designed to create a more inclusive and equitable economic environment.

He noted that the abolition of five major bank charges is a step toward fairness and transparency, ensuring that Nigerians keep more of their income while businesses face fewer obstacles in financial operations.

“The government’s objective,” Oyedele said, “is to strike a balance between effective revenue collection and economic growth, ensuring that taxation supports rather than stifles productivity.”

The Road Ahead

As the reforms take effect in January 2026, the Federal Government has pledged to work closely with banks, financial institutions, and stakeholders to ensure smooth implementation.

Experts say that if properly enforced, these changes could improve financial inclusion, increase disposable income, and strengthen consumer confidence — helping to reposition Nigeria’s economy for sustainable growth in the years ahead.