The Central Bank of Nigeria has rolled out sweeping changes to payment fees that will eliminate charges on small transfers while potentially increasing costs for mid-range transactions. Under a draft guide dated April 21, 2026, the regulator aims to make cashless payments more attractive to small businesses and frequent users.
Notably, how this policy creates clear winners and losers. Transactions below ₦5,000 ($3.68) will now be completely free, a significant win for millions of Nigerians making small, frequent payments.
New Fee Structure Takes Effect
The most dramatic change affects mid-tier transactions. Inter-bank transfers between ₦5,000 ($3.68) and ₦50,000 ($36.81) will cost just ₦10 ($0.007). Transfers above ₦50,000 remain capped at ₦50.
The timing makes sense given the explosive growth in digital payments. E-payments crossed the ₦1 quadrillion ($736.14 billion) mark in 2024, yet adoption among informal businesses remains stubbornly low.
The Stamp Duty Problem
Here is where things get complicated. Nigeria reintroduced stamp duties in 2026, five years after replacing them with the Electronic Money Transfer Levy (EMTL). The original EMTL imposed a flat ₦50 charge on transfers of ₦10,000 and above, paid by the receiver.
Now the burden has shifted entirely to senders. They absorb both the bank transfer fee and the government's stamp duty, making transfers above ₦10,000 cost at least ₦60 ($0.044) to initiate.
PoS Withdrawal Changes
The CBN also structured fees for Point of Sale withdrawals, moving away from the current informal pricing that can cost as much as ₦100 per ₦5,000. Under the new regime, both on-us and not-on-us withdrawals will cost ₦100 per ₦20,000 ($14.72).
This change directly affects how millions access cash daily. PoS terminals have become the primary cash source for many Nigerians, especially in areas with limited banking infrastructure.
Market Response Expected
I expect banks and fintechs to adjust their strategies around these new fee structures. The elimination of small transaction fees should boost volume, while the restructured PoS fees provide more predictable costs for agents.
The policy clearly favors small transactions while making larger transfers more expensive for senders. Whether this achieves the CBN's goal of incentivizing electronic payment adoption among small businesses remains to be seen.
For millions of Nigerians who rely on small, frequent transfers, this represents genuine relief. For those making larger transactions, the cost burden has definitively shifted to them. The success of this policy will likely depend on whether the volume increase from free small transactions offsets the higher costs on larger ones.