President Tinubu Government is set to scrap five bank charges from January 2026.
NewsOnline Nigeria reports that in a major relief for Nigerians, President Bola Ahmed Tinubu’s administration has announced the removal of several standard banking charges as part of the government’s sweeping Tax Reform Package scheduled to take effect in January 2026.
The new framework, signed into law on June 26, 2025, is designed to stimulate economic growth, improve the ease of doing business, and reduce the financial pressure on low-income earners and small businesses across the country.
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The comprehensive reform which includes the Nigeria Tax Act (NTA), Nigeria Tax Administration Act (NTAA), Nigeria Revenue Service Act (NRSA), and Joint Revenue Board Act (JRBA) forms the backbone of Tinubu’s fiscal overhaul agenda.
Key Bank Charges to Be Abolished
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, outlined five key banking fees that will be eliminated under the new laws:
Electronic Money Transfer Levy (₦50 charge)
Currently applied to every electronic transfer under ₦10,000, this ₦50 levy will be completely abolished from January 2026. This means millions of Nigerians making small daily transfers to family, friends, or businesses will no longer pay extra charges, a move expected to boost financial inclusion and encourage digital transactions.Stamp Duty on Salary Payments
Both employers and employees will benefit as the stamp duty on salary transfers will be scrapped. With no more fees on monthly payroll transactions, the reform will lighten the financial load on workers and ease operational costs for small and medium enterprises.Stamp Duty on Government Securities and Share Transfers
To promote investment, all stamp duties on transfers of government bonds, securities, and shares will be removed. This change is aimed at making investment more attractive and increasing participation in financial markets, particularly for small investors.Stamp Duty on Stock and Share Transfer Documents
Previously, documentation related to stock and share transfers attracted stamp duty fees. Starting 2026, these document fees will also be abolished, simplifying stock market participation and reducing administrative costs for investors.Intra-Bank Transfer Charges (₦50 per transaction)
The ₦50 charge on transfers between accounts within the same bank will be eliminated, allowing customers to move funds freely without incurring additional costs — a development expected to improve liquidity management for both individuals and businesses.
Wider Tax Exemptions to Ease Cost of Living
Beyond banking, the new tax structure provides relief for essential goods and services. Items such as basic food products, rent, education, healthcare, agricultural inputs, pharmaceuticals, disability aids, baby products, transport, and electric vehicles will either be VAT-exempt or attract a 0% rate.
Additionally, small businesses with an annual turnover below ₦100 million will be exempt from VAT, while VAT on diesel, petrol, solar equipment, and some humanitarian supplies will remain suspended or exempt.
Oyedele described the reforms as “a bold and practical step towards a fairer tax system that prioritizes economic growth and public welfare.”
“These changes are designed to make everyday banking cheaper, encourage investment, and help businesses thrive in a more inclusive economy,” Oyedele stated.
With these reforms, Nigerians can look forward to a more transparent, affordable, and digitally driven banking system starting January 2026, marking a major milestone in the Tinubu administration’s $1 trillion GDP ambition.
