Bank customers complain of over-deductions on electronic transfers
Thousands of bank customers across Nigeria have raised alarms over what they describe as “double stamp duty charges” on their electronic transfers since the full implementation of the new tax laws on January 1, 2026.
Reports on Tuesday, January 13, 2026, indicate that many depositors are being debited N100 for transactions of N10,000 and above, instead of the uniform N50 stamp duty charge communicated by their respective financial institutions. This development has sparked widespread frustration, with many accusing banks of exploiting the new tax regime to overcharge unsuspecting customers during a period of economic hardship.
Bank customers who received email notifications earlier this month were informed that a mandatory N50 stamp duty would be applied to all transfers of N10,000 or higher as part of the Federal Government’s latest fiscal reforms. However, less than two weeks into the new year, many have taken to social media and news outlets to share evidence of multiple deductions. One customer, speaking anonymously, described the situation as “ridiculous,” noting that the double charges are becoming a significant burden on daily business transactions and personal remittances.
In response to the growing outcry, some customers have threatened legal action against their banks, while others have called for an immediate investigation by the Central Bank of Nigeria (CBN). The silence from the apex bank and the Bank Customers’ Association of Nigeria (BCAN) has further fueled suspicions of administrative gaps in the implementation of the 2025 Tax Laws. As the grumbling persists, the credibility of the much-debated tax reforms faces renewed scrutiny from both economic experts and the general public.
Experts clarify confusion between stamp duty and transfer fees
Amidst the controversy, financial experts have stepped in to clarify the potential reasons for the perceived double charges. Professor Godwin Oyedokun of Lead City University, Ibadan, explained that many customers may be confusing the N50 stamp duty with the standard NIP (Nigeria Instant Payment) transfer commission, which is also often N50. According to him, a customer transferring funds will likely see a total debit of N100, where N50 goes to the government as tax and the other N50 is the service charge for the bank’s electronic platform.
Professor Oyedokun also noted that banks sometimes consolidate charges and debit them at intervals, which can give the impression of an overcharge if the customer has performed multiple transactions in a single day. He cautioned Nigerians against misrepresenting the deductions to discredit the government’s tax reforms, emphasizing that the tax itself remains N50. He urged customers to carefully scrutinize their bank statements to distinguish between statutory taxes and bank-led service commissions before escalating complaints.
However, some critics argue that the lack of clear, itemized alerts from banks is the root cause of the confusion. They contend that if banks provided transparent breakdowns of every deduction, customers would not feel the need to “grumble” over what they perceive as illegal charges. The discrepancy between the email notifications and the actual debits has led to a trust deficit that many believe the Federal Inland Revenue Service (FIRS) and the CBN must address through a unified public awareness campaign.
Tax reforms continue to face legal and public challenges
The latest controversy over stamp duty is just one of many challenges facing the 2025 Tax Laws, which were signed into law by President Bola Ahmed Tinubu in June 2025. From the moment the bills were introduced to the National Assembly in October 2024, they have been met with resistance from various sectors, including small business owners and human rights activists like Femi Falana. Concerns have been raised about the potential for these laws to ignite job losses and increase the cost of domestic services, such as air travel.
Despite the government’s dismissal of doubts regarding the reforms, global auditing firm KPMG recently spotted errors and gaps in the legislation, leading to calls for re-gazetting and immediate amendments. The PDP and other opposition parties have also criticized the laws, labeling them as “punitive” and an “alteration” of the original agreements. The ongoing issues with bank charges are likely to intensify the calls for a stay of execution on several provisions of the tax regime until all technical and administrative hurdles are cleared.
As Nigeria navigates the complexities of its new fiscal landscape, the government faces the difficult task of balancing revenue generation with the welfare of its citizens. For now, the “double charge” saga serves as a reminder of the friction that often accompanies large-scale economic transitions. Bank customers are advised to keep detailed records of their transactions and to report any verified cases of overcharging to the appropriate regulatory bodies to ensure that the new tax laws are implemented fairly and accurately.
