Why was I charged on a transfer under ₦10,000?

The ₦50 stamp duty only starts at ₦10,000, but the NIP transfer fee starts earlier. A transfer of ₦5,000 to ₦9,999 to another bank attracts the ₦10 NIP fee plus 75 kobo VAT. Some banks also bill an SMS alert for each debit, which shows up as a separate small charge.

Is bank transfer free in Nigeria?

Transfers below ₦5,000 to another bank carry no NIP fee under the current CBN guide, and transfers under ₦10,000 carry no stamp duty, so small transfers can cost nothing. Above those amounts you pay the tiered fee, VAT on it, and ₦50 stamp duty from ₦10,000.

Do fintech apps charge transfer fees?

They are allowed to charge the same NIP fee as banks, but many waive it for a set number of transfers or during promotions. What they cannot waive is the ₦50 stamp duty on transfers of ₦10,000 and above, because that is a government tax they collect, not a fee they set.

What is the maximum NIP transfer fee?

₦50 per transfer, plus 7.5% VAT, making ₦53.75. Add the ₦50 stamp duty and the most a single interbank transfer above ₦50,000 costs in regulated charges is ₦103.75, however large the amount.

Why do charges differ between banks?

The CBN guide sets the maximum NIP fee; banks may charge less, and many digital banks and apps charge nothing for some transfers. Differences you see usually come from waivers, SMS alert charges or extra services, not from a higher regulated fee. If a bank charges above the CBN guide, you can complain to the bank and then to the CBN.

Nigeria Bank Transfer Charges Calculator

Type an amount to see the NIP fee, VAT and stamp duty on a transfer to another Nigerian bank, and what actually leaves your account.

Amount you are sending

NIP fee₦5,000 to ₦50,000: ₦10
VAT on the fee (7.5%): ₦0.75
Stamp duty₦50 on ₦10,000 and above: ₦50
Total charges: ₦60.75
Leaves your account: ₦50,060.75
Recipient gets: ₦50,000

For transfers to another bank. Charges are added on top, so the recipient receives the full amount. Own-account transfers within the same bank and salary payments are exempt from stamp duty.

Worked example: sending ₦50,000 from a Nigerian bank to another bank costs ₦60.75 in total: a ₦10 NIP fee, ₦0.75 VAT on that fee and ₦50 stamp duty. ₦50,060.75 leaves your account and the recipient gets the full ₦50,000.

How NIP transfer fees work

NIP stands for NIBSS Instant Payment, the switch run by the Nigeria Inter-Bank Settlement System that moves money between banks in seconds. Almost every interbank transfer you make on an app, through USSD or at internet banking travels over NIP, which is why the fee carries its name.

The Central Bank of Nigeria sets the maximum a bank may charge through its Guide to Charges by Banks and Other Financial Institutions. The current guide, which took effect on 1 May 2026 and replaced the January 2020 edition, sets three tiers:

Below ₦5,000: ₦0 per transfer
₦5,000 to ₦50,000: ₦10 per transfer
Above ₦50,000: ₦50 per transfer

The tiers exist so small, everyday payments stay cheap. A trader receiving ₦2,000 for goods should not lose a meaningful slice of it to fees, while a ₦500,000 transfer can carry a fixed ₦50 without anyone noticing. Under the 2020 guide, even the smallest transfer cost ₦10; the 2026 guide removed the fee below ₦5,000 to push more small payments away from cash.

Because the fee is a bank service charge, 7.5% VAT is added on top of it. These figures are ceilings, not fixed prices. A bank may charge less, and many digital banks waive the fee entirely for some transfers, but none may charge more. Transfers between two accounts at the same bank do not go through NIP, and banks usually do not charge for them.

What is EMTL and why is it charged

EMTL, the Electronic Money Transfer Levy, was a flat ₦50 charge introduced by the Finance Act 2020 on electronic receipts of ₦10,000 and above. It was deducted from the person receiving the money, which confused a lot of people: you could be sent ₦10,000 and find ₦9,950 in your account.

From 1 January 2026, the Nigeria Tax Act 2025 replaced EMTL with a stamp duty of the same ₦50, on the same ₦10,000 threshold, but moved who pays it. The sender now bears the charge, so it appears as an extra debit on your side when you transfer, and the recipient gets the full amount. Many banks still label the line "EMTL" in statements, which is why both names appear in searches.

Three kinds of transfer are exempt: amounts below ₦10,000, salary payments, and transfers between your own accounts at the same institution where the names and BVN or NIN match.

The point most often missed is that this is a tax, not a bank fee. Banks and fintech apps collect it on behalf of the Federal Government and remit it; they keep none of it. That is why no bank can waive it, why it appears even when an app advertises free transfers, and why complaining to your bank about it will not get it reversed. If you were charged stamp duty on a transfer below ₦10,000, though, that is an error worth reporting.

Does the fee differ by bank or by app

The regulated part does not. Every bank and app sits under the same CBN maximum, and every one collects the same ₦50 stamp duty. What differs is how much of the NIP fee each provider chooses to pass on. Traditional banks generally apply the full fee to every interbank transfer. Fintech apps and digital banks compete on price, so many give customers a number of free transfers each month, or absorb the fee during promotions.

Those offers can change without much notice, so check the fees section inside your app before relying on a transfer being free. And remember the stamp duty: fintechs began collecting it in 2024, and since January 2026 it is charged to the sender like everywhere else. A "free" ₦20,000 transfer on an app still costs you ₦50.

Frequently asked questions

Why was I charged on a transfer under ₦10,000?: The ₦50 stamp duty only starts at ₦10,000, but the NIP transfer fee starts earlier. A transfer of ₦5,000 to ₦9,999 to another bank attracts the ₦10 NIP fee plus 75 kobo VAT. Some banks also bill an SMS alert for each debit, which shows up as a separate small charge.
Is bank transfer free in Nigeria?: Transfers below ₦5,000 to another bank carry no NIP fee under the current CBN guide, and transfers under ₦10,000 carry no stamp duty, so small transfers can cost nothing. Above those amounts you pay the tiered fee, VAT on it, and ₦50 stamp duty from ₦10,000.
Do fintech apps charge transfer fees?: They are allowed to charge the same NIP fee as banks, but many waive it for a set number of transfers or during promotions. What they cannot waive is the ₦50 stamp duty on transfers of ₦10,000 and above, because that is a government tax they collect, not a fee they set.
What is the maximum NIP transfer fee?: ₦50 per transfer, plus 7.5% VAT, making ₦53.75. Add the ₦50 stamp duty and the most a single interbank transfer above ₦50,000 costs in regulated charges is ₦103.75, however large the amount.
Why do charges differ between banks?: The CBN guide sets the maximum NIP fee; banks may charge less, and many digital banks and apps charge nothing for some transfers. Differences you see usually come from waivers, SMS alert charges or extra services, not from a higher regulated fee. If a bank charges above the CBN guide, you can complain to the bank and then to the CBN.

Sources

Figures last checked 12 October 2026.