Guaranty Trust Bank has formally notified its customers of significant changes to stamp duty regulations under the Nigeria Tax Act 2025, which came into force on January 1, 2026, shifting the burden of the ₦50 electronic transfer levy from recipients to senders.
In an email sent to customers on Tuesday, the financial institution outlined the key provisions of the new tax framework, emphasising that the stamp duty charge on electronic bank transfers of ₦10,000 and above will now be deducted from the sender’s account rather than the recipient’s, marking a fundamental shift in the application of the levy.
“Please be reminded that, in line with the Nigeria Tax Act 2025, which took effect from January 1, 2026, the ₦50 stamp duty on electronic bank transfers of ₦10,000 and above is paid by the sender of the transaction and not the receiver,” the bank stated in the customer notification.
The clarification comes as Nigerian banks move to ensure full compliance with the updated tax legislation, which seeks to streamline revenue collection and eliminate ambiguities in the application of stamp duty charges on digital transactions.
GTBank further specified that certain categories of transactions will remain exempt from the stamp duty charge, providing relief for low-value transfers and routine financial activities. According to the bank, transfers below ₦10,000, salary payments, and transfers between a customer’s own GTBank accounts will not attract the levy, ensuring that everyday banking operations are not unduly burdened by the tax.
The bank also emphasised that the stamp duty is a separate charge from regular transfer fees and will be clearly displayed to customers before they complete any transaction, a measure designed to ensure transparency and allow customers to make informed decisions about their transfers.
“The stamp duty is separate from regular transfer fees and will be clearly displayed before completing any transaction, ensuring transparency for customers,” the message read.
GTBank encouraged its customers to review their transfers carefully and plan their transactions accordingly, noting that the update is part of a broader nationwide effort to streamline compliance with the Nigeria Tax Act 2025 and enhance the efficiency of tax collection across the banking sector.
The stamp duty on electronic transfers has been a contentious issue in Nigeria’s financial landscape since its introduction, with debates centring on its impact on financial inclusion and the cost of digital banking services. The levy, initially introduced as part of efforts to modernise tax collection and capture revenue from the rapidly expanding digital economy, has generated significant income for the federal government.
According to reports, the Federal Inland Revenue Service recorded N360.29 billion in revenue from electronic money transfer levies between January and October 2025, underscoring the scale of digital transactions in Nigeria and the importance of the levy to government coffers. The substantial revenue collection highlights the growing reliance on electronic payments and transfers as Nigeria continues its transition towards a cashless economy.
The Nigeria Tax Act 2025, which consolidated and updated various tax provisions, represents one of the most comprehensive reforms of the country’s tax framework in recent years. The legislation was designed to address gaps in existing tax laws, improve compliance, and expand the government’s revenue base amid mounting fiscal pressures and the need to fund critical infrastructure and social programmes.
Under the previous arrangement, the stamp duty charge was often applied to the recipient of electronic transfers, a practice that drew criticism from consumers and financial sector stakeholders who argued that it created confusion and administrative challenges. The new provision, which places the responsibility squarely on the sender, is expected to simplify the process and reduce disputes over who should bear the cost of the levy.
However, the change may also increase the cost of sending money for individuals and businesses that frequently make electronic transfers, particularly small and medium-sized enterprises that rely heavily on digital banking for day-to-day operations. Financial analysts have cautioned that the cumulative effect of the levy, when applied to multiple transactions, could have implications for business cash flow and consumer spending patterns.
The Federal Inland Revenue Service has been working closely with banks and other financial institutions to ensure smooth implementation of the new stamp duty rules, with a focus on minimising disruption to customers and maintaining the integrity of the banking system. Banks have been directed to update their systems to reflect the changes and to provide clear communication to customers about how the levy will be applied.
The notification from GTBank is part of a wider industry-wide effort to educate customers about the new tax provisions and to ensure that all stakeholders are aware of their obligations under the Nigeria Tax Act 2025. Other commercial banks are expected to issue similar communications in the coming days as the industry moves to align its operations with the updated legal framework.
For Nigerian consumers, the shift in stamp duty responsibility represents yet another adjustment to the evolving landscape of digital banking and taxation. As the country continues to embrace cashless transactions and electronic payments, the regulatory environment surrounding these activities is likely to undergo further changes as the government seeks to balance revenue generation with the need to promote financial inclusion and economic growth.
