The Nigerian government is set to implement a new levy on electronic financial transactions, adding to the cost of banking for millions. Starting from January 1, 2026, a mandatory N50 Electronic Money Transfer Levy (EMTL) will be deducted from all electronic transfers of N10,000 and above.
How the New N50 Government Levy Will Work
This levy is a government-imposed stamp duty, separate from the standard transaction fees charged by banks and fintech platforms. According to reports from Tech Cabal, every sender initiating a transfer above the N10,000 threshold will bear the full N50 cost in addition to their bank's normal transfer charges.
It is crucial to note that existing bank charges remain unchanged. This means Nigerians will effectively pay twice: once for the bank's service and again for the government levy. The implementation will be carried out by all financial institutions, including commercial banks and digital payment platforms.
There are, however, key exemptions. Transfers below N10,000 will not attract the levy. Furthermore, transfers between accounts owned by the same individual within the same bank are also exempted.
Delayed Implementation and Financial Impact
The EMTL was originally scheduled to commence on September 9, 2024, but its rollout was delayed following significant public opposition. The new year date confirms the government's resolve to proceed with the policy.
For a vast number of Nigerians who depend on frequent, small-to-medium value transfers for daily business and personal sustenance, this additional charge poses a considerable strain. It introduces another layer of cost on households and businesses already navigating a landscape of various banking fees.
These existing charges include ATM withdrawal fees for other banks' machines, card maintenance fees, SMS alert costs, and cashless policy fees for large cash transactions. The N50 EMTL becomes an extra burden on top of this structure.
Context of Other Recent Fee Adjustments
This levy announcement comes amidst other adjustments in Nigeria's electronic payment ecosystem. Earlier, the Nigerian Inter-Bank Settlement System (NIBSS) reduced its transaction processing fee for NIBSS Instant Payments from N5 to N3.75.
In a letter dated May 31, 2023, signed by NIBSS Executive Officer Premier Oiwoh and Executive Director of Business Development Ngover Ihyember-Nwankwo, the company stated the reduction was aimed at promoting financial inclusion and encouraging innovation. This stands in contrast to the new government levy which increases transaction costs.
As preliminary updates about the N50 charge begin to appear on banking platforms, customers are advised to review their transaction patterns and factor in this new cost from the first day of 2026.
