Bank transfer charges in Nigeria explained: ₦10, ₦25, ₦50, VAT and the ₦50 stamp duty
Why a ₦5,000 transfer costs ₦10.75 and a ₦10,000 one costs ₦76.88. The bands, the VAT on top, the stamp duty line, and when a transfer is free.
Every transfer out of a Nigerian bank account carries a small fee, and from ₦10,000 a second charge appears that confuses almost everyone. Here is what each line means, using the exact numbers Kolet shows on its confirmation card.
The three bands
The Central Bank's guide to bank charges sets the transfer fee by amount:
- Up to ₦5,000: ₦10
- ₦5,001 to ₦50,000: ₦25
- Above ₦50,000: ₦50
Kolet charges exactly these bands. Nothing is added to them.
VAT on the fee
Value added tax of 7.5% is charged on the fee, not on the amount you send. So the ₦10 band costs ₦10.75, the ₦25 band costs ₦26.88, and the ₦50 band costs ₦53.75.
The ₦50 stamp duty
From ₦10,000 upwards the Federal Inland Revenue Service collects a ₦50 levy on each electronic transfer. It is not a bank charge and not a Kolet charge, which is why Kolet prints it on its own line with a note saying so:
You're about to send ₦10,000.00 to: EMEKA OKONKWO GTBank — 0123456789 Fee: ₦26.88 Stamp duty: ₦50.00 Total: ₦10,076.88 Stamp duty is a FIRS charge on every outgoing transfer of ₦10,000 or more. It is not ours. Should I proceed?
That is how a ₦10,000 transfer comes to ₦76.88 in charges: ₦25 fee, ₦1.88 VAT, ₦50 stamp duty. A ₦9,999 transfer pays ₦26.88.
A ₦5,000 transfer, for comparison
You're about to send ₦5,000.00 to: EMEKA OKONKWO GTBank — 0123456789 Fee: ₦10.75 Total: ₦5,010.75 Should I proceed?
₦10 fee plus ₦0.75 VAT, and no stamp duty because the amount is below ₦10,000.
When a transfer is free
Sending to another Kolet user costs nothing. The money moves inside the same bank, so there is no interbank fee to pass on and no stamp duty is triggered by Kolet. The card shows a fee of ₦0.00 in that case.
Airtime, data and bill payments on Kolet carry no transfer fee either. You pay the face value.
Why it shows before you confirm
The fee, the stamp duty and the total are on the card you confirm, every time. If you ever see a Kolet charge that was not on the card, that is a bug, and we want to hear about it: say "I need help" in the chat.
Common questions
- Is the ₦50 stamp duty a Kolet charge?
- No. It is a federal levy on electronic transfers of ₦10,000 or more. Kolet shows it as its own line so you can see which part is which.
- Is VAT charged on the amount I send?
- No. VAT is 7.5% of the fee only. On a ₦10 fee that is 75 kobo.
- Are transfers between Kolet users really free?
- Yes. They stay inside the same bank, so there is no fee and the card shows ₦0.00.
- Can I avoid the stamp duty by splitting a transfer?
- Two transfers of ₦5,000 each carry no stamp duty, but each pays its own ₦10.75 fee. Whether that is worth it is your call; Kolet charges the same either way.