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The short answer
The ₦50 deducted on some PalmPay transfers is stamp duty, a government charge on electronic transfers of ₦10,000 or more, not a PalmPay fee. Since 1 January 2026, under the Nigeria Tax Act 2025, it replaced the old Electronic Money Transfer Levy (EMTL) and is reported to be deducted from the sender; transfers below ₦10,000, salary payments and transfers between your own accounts at the same institution are reported as exempt.
What the ₦50 is
Nigerian financial institutions collect certain taxes on behalf of the government at the point of payment. On electronic transfers, that charge is a flat ₦50. It is the same amount whether you send ₦10,000 or ₦10 million, and the institution passes it on; PalmPay does not keep it.
The charge has been through more than one name. Until the end of 2025 people knew it as the Electronic Money Transfer Levy, or EMTL. From 1 January 2026, under the Nigeria Tax Act 2025, EMTL was replaced by a flat ₦50 stamp duty on electronic transfers of ₦10,000 or more, or the foreign-currency equivalent, according to Techeconomy's report of 1 January 2026, which relied on a First Bank customer notice.
When it applies and when it does not
| Transfer | ₦50 stamp duty? |
|---|---|
| ₦10,000 or more to another person or institution | Yes, reported as charged to the sender |
| Below ₦10,000 | No |
| Salary payments | Reported as exempt |
| Between your own accounts at the same institution | Reported as exempt |
| Between your own accounts at different institutions | Not addressed in the report we opened; expect it to apply |
The charge is once per qualifying transaction. It is not cumulative: three transfers of ₦8,000 in a day do not add up to a ₦50 charge, while one transfer of ₦24,000 does.
Who pays: sender or receiver
This is the change most people noticed. Reports of the 2026 rules describe the ₦50 as deducted from the sender's account rather than the beneficiary's. If you are receiving payments on PalmPay and still see a ₦50 deduction on an incoming credit, open the transaction details and check the description; then raise it with PalmPay, quoting the transaction, because an inflow charge would not match what the 2026 notices describe.
Worked example: three transfers in a day
These amounts are an example. Chika sends three transfers from PalmPay on the same day:
- ₦8,500 to her sister: below ₦10,000, no stamp duty
- ₦15,000 to her landlord's agent: ₦50 stamp duty
- ₦120,000 to her supplier: ₦50 stamp duty
Total stamp duty for the day: ₦50 + ₦50 = ₦100. Any PalmPay transfer fee is a separate line; see PalmPay transfer charges. Total sent: ₦143,500, plus ₦100 tax.
Should you split transfers to avoid it?
Splitting a payment into amounts under ₦10,000 to avoid stamp duty is not something we suggest. It creates more transactions to track, may hit your daily transaction count or limits, and deliberately structuring payments to avoid a tax is a question for a tax adviser, not a workaround.
Why the change matters for traders and freelancers
Moving the charge from receiver to sender changes who notices it. A trader who takes many customer transfers of ₦10,000 or more each day no longer sees the ₦50 on each credit; the customers pay it when they send. Someone who pays out often, such as a business paying suppliers or a household paying several bills by transfer, now carries the charge on every qualifying payment.
For a shop, the practical effect is that customers may ask you to absorb the ₦50, or may try to pay in two parts under ₦10,000. Decide your policy and say it clearly at the counter. If you invoice clients, the ₦50 is their cost as sender; it does not reduce what you receive.
Foreign-currency transfers
The 2026 notice described the threshold as ₦10,000 or its foreign-currency equivalent, so qualifying transfers in other currencies are also in scope where the institution processes them. A PalmPay wallet is naira only, so for PalmPay users this mostly matters on other accounts.
How to read it on your PalmPay statement
On PalmPay the stamp duty usually appears as its own line or in the breakdown of the transfer, next to the amount and any fee. If you need to show it to an accountant, download your statement; our guide to getting a PalmPay statement explains how. Businesses that pay many suppliers should total the stamp duty each month as a cost of doing business.
What to check first
- Was the transfer ₦10,000 or more? If not, the ₦50 should not be stamp duty.
- Was it a salary payment or a move between your own accounts at the same institution? These are reported as exempt.
- Is the ₦50 on an incoming payment? Raise it with PalmPay.
- Is the ₦50 actually a transfer fee? Check the line description.
For the wider rules on moving money, see bank transfer limits in Nigeria. This article is information, not tax advice; the Nigeria Revenue Service (NRS), which replaced FIRS, publishes official guidance.
Where Pryme fits
Stamp duty is a tax and applies to qualifying transfers whichever provider you use. On Pryme, the fee and any tax for a transfer are shown as separate lines before you approve.
Questions people ask
Why did PalmPay remove ₦50 from my transfer?
It is stamp duty, a government charge on electronic transfers of ₦10,000 or more. Since January 2026 it is reported to be deducted from the sender.
Is the ₦50 charge on PalmPay a fee?
No. Stamp duty is a tax collected by the institution for the government. Any PalmPay transfer fee would appear as a separate line.
Do I pay ₦50 when someone sends me money on PalmPay?
Reports of the 2026 rules say the sender pays. If you see ₦50 on an incoming credit, check the description and raise it with PalmPay.
Is stamp duty charged on transfers below ₦10,000?
No. Transfers below ₦10,000 are reported as exempt, as are salary payments and moves between your own accounts at the same institution.
Sources
- Stamp duty replaces EMTL: sender to bear ₦50 charge on bank transfers, Techeconomy (1 Jan 2026) · accessed Oct 2026
- PalmPay - Smarter Way to Bank, Google Play listing (updated 24 Sep 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.