Joy Agwunobi
Millions of Nigerians who rely on digital banking and fintech platforms will face a renewed form of taxation starting January 1, 2026, as the government officially replaces the Electronic Money Transfer Levy (EMTL) with Stamp Duties.
A notice from PalmPay, one of Nigeria’s leading fintech platforms, informed customers that under the Nigeria Tax Act (NTA) 2025, a ₦50 Stamp Duty will be applied to transfers of ₦10,000 or more. The levy will be charged to the sender, not the recipient, and does not apply to transfers between the sender’s own PalmPay accounts where the name and BVN/NIN match. PalmPay clarified that it does not benefit from the Stamp Duty, which is remitted directly to the Federal Government.
“PalmPay continues to offer unlimited free transfers to any bank account. We remain committed to providing affordable and accessible financial services to our customers,” the notice read.
The EMTL was introduced five years ago under the Finance Act 2020 to replace the traditional stamp duty on electronic transactions. Initially, it applied only to deposit money banks, but in December 2024, the levy was extended to fintech transactions. The move sparked concerns from point-of-sale (POS) operators and small business owners, who said the ₦50 charge was eroding their profit margins.
While ₦50 may appear minimal, the cumulative effect across millions of daily transfers is substantial, generating hundreds of billions of naira in revenue for the government. For everyday Nigerians, particularly those relying on digital payments for business or personal transactions, the levy gradually increases the cost of moving money.
The transition from EMTL back to Stamp Duty is part of a broader package of tax reforms aimed at improving revenue collection and diversifying the nation’s income away from oil. Experts note that while the change is largely administrative, it reinforces the government’s strategy of leveraging electronic transactions to expand its non-oil revenue base.
Small business owners, POS operators, and individual account holders who have long expressed concern over the EMTL may face renewed pressure as Stamp Duties take effect. Despite this, fintech platforms like PalmPay continue to emphasise their commitment to keeping digital transfers accessible and cost-effective for users.
As Nigeria’s economy becomes increasingly digital, the introduction of Stamp Duty highlights the balancing act between generating government revenue and maintaining the affordability of everyday financial transactions for millions of citizens.
