Federal Government Confirms Bank Charges Abolished to Ease Financial Burden
Millions of Nigerians are set to enjoy significant financial relief starting January 2026 as five frequently applied bank charges are officially abolished under the Federal Government’s new fiscal policy reforms.
The announcement comes as part of President Bola Ahmed Tinubu’s comprehensive tax reform agenda aimed at boosting economic activity, reducing cost burdens on households, and simplifying business operations across the country.
The reforms, signed into law on June 26, 2025, are captured in four newly enacted legislations: the Nigeria Tax Act (NTA), Nigeria Tax Administration Act (NTAA), Nigeria Revenue Service Act (NRSA), and the Joint Revenue Board Act (JRBA).
Together, these laws constitute a sweeping overhaul designed to modernize Nigeria’s tax administration system and promote financial inclusion.
Bank Charges Abolished: What Nigerians Should Expect
According to Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, the new policy removes financial barriers previously embedded in routine banking transactions.
“The abolition of these charges will directly benefit both individuals and small businesses,” Oyedele stated during a press briefing.
The ₦50 Electronic Money Transfer Levy (EMTL), previously levied on transfers above ₦10,000, is scrapped entirely.
This charge affected millions of daily electronic transactions and its removal is expected to encourage wider adoption of digital payments, enhance financial inclusion, and reduce transaction costs for everyday banking operations.
Employees and employers will no longer bear stamp duty on salary transfers, allowing workers to receive their full salaries while reducing administrative and operational costs for businesses.
Small and medium-sized enterprises (SMEs), in particular, stand to benefit as this reform reduces the hidden cost of payroll management.
Investors in government securities, including treasury bills, bonds, and shares, will also see a reduction in transaction costs. Stamp duties on capital market investments have been removed, making the market more accessible for retail investors and potentially stimulating higher participation among Nigerian citizens.
Additionally, stamp duties on documents used for processing stock or share transfers have been eliminated.
This change simplifies investment documentation procedures and further reduces compliance costs for investors and operators within the capital market.
The ₦50 charge for intra-bank transfers between accounts will no longer apply.
Individuals and businesses will now be able to transfer funds between accounts without incurring additional fees, improving cash flow management and facilitating seamless banking operations across personal and business accounts.
Implications of Bank Charges Abolished
The removal of these fees reflects a broader intention by the Federal Government to ease the financial burden on citizens while promoting economic growth.
By scrapping these common charges, the government aims to encourage investment, strengthen digital financial adoption, and support small businesses that operate on tight margins.
Financial analysts note that abolishing these bank charges will significantly impact everyday Nigerians, especially lower-income earners, who often face high costs for routine banking transactions.
“These reforms not only provide relief but also signal the government’s commitment to a more inclusive financial system,” said a Lagos-based economist.
The bank charges abolished initiative is expected to encourage greater participation in digital banking platforms, enhance transparency in financial transactions, and potentially reduce reliance on cash, which has been a driver of informal economic activity in Nigeria.
Government Reassures Public on Implementation
Oyedele assured that the reforms will be implemented without delay and that banks have been instructed to adjust their systems to reflect the new exemptions.
He emphasized that the reforms stem from explicit provisions in the Nigeria Tax Act 2025, which provides for clear exemptions from certain stamp duties and related charges previously enforced under older regulations.
“These measures mark a transformative step in our fiscal management approach,” Oyedele stated. “We are ensuring that unnecessary financial burdens are removed and that both individuals and enterprises can benefit from a simplified and fairer tax framework.”
Experts Weigh In
Industry experts predict that the abolition of bank charges will increase disposable income for households, support small business growth, and stimulate broader economic activity.
Banks, however, are advised to recalibrate their revenue models to adapt to the reduced fee-based income, with a likely focus on value-added services.
Economists also believe that the reforms will reinforce digital financial literacy, as more Nigerians are incentivized to adopt electronic payments and banking solutions.
With these reforms taking effect from January 2026, Nigerians can expect a significant reduction in everyday transaction costs.
The bank charges abolished initiative is a milestone in the Federal Government’s commitment to promoting financial inclusion and reducing barriers to economic participation.
By eliminating these charges, the government hopes to make banking more accessible, encourage investment in the capital market, and support SMEs, ultimately contributing to a more robust and equitable financial ecosystem across the country.
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