Stamp Duty Charge on NGN Transfers

Stamp duty is a legally mandated tax imposed by the Nigerian government on electronic transfers in accordance with the Nigeria Tax Act (NTA) 2025. As a payment service provider operating in Nigeria, Paystack is required to deduct duty charges on electronic transfers equal to and above ₦10,000.

As of February 18, 2026, a ₦50 stamp duty applies when any Paystack merchant makes a transfer of ₦10,000 or more from their Paystack balance.

This is a flat fee, not a percentage, regardless of the transaction amount above the threshold and is charged separately from Paystack’s transfer fees.

💡 This charge does not apply to transfers below ₦10,000 and will not be charged to Registered Payroll merchants—merchants who use Paystack primarily for the processing of employee salaries.

Our transfer fees remain the same, but the stamp duty will now be added to qualifying transfers as follows:

Stamp duty charges will appear as a separate line item in your Paystack Dashboard Balance history, just as the usual transfer fees currently appear.

• Why was I charged ₦50 in addition to the transfer fee? The ₦50 charge is a stamp duty required by Nigerian law. For every transfer of ₦10,000 or more made from your Paystack balance, the law mandates a ₦50 levy.

  This is not a Paystack fee; it is a government levy on electronic transfers in accordance with the Nigeria Tax Act (NTA) 2025.

• Is this a new Paystack fee? No. Paystack is not increasing its service fees. Our standard transfer charges remain the same. This ₦50 charge is required by the Nigeria Tax Act 2025, and Paystack does not keep this money.

• When did this start? It applies to all eligible transfers made from February 18, 2026. Transfers made before this date are not affected.

• Does this apply to all transfers? No. It only applies when:

  1. The merchant makes a transfer from their Paystack balance.

  2. The transfer amount is ₦10,000 or more.

  It does not apply to transfers below ₦10,000 or to registered payroll merchants.

• If I transfer ₦100,000, how much will be deducted from my balance? When you transfer ₦100,000, your balance will be debited a total of ₦100,100. Here is the breakdown:

  • Transfer Amount: ₦100,000

  • Paystack Fee: ₦50 (standard fee for transfers above ₦50,000)

  • Stamp Duty: ₦50

  • Total: ₦100,100

• Why was I charged ₦50 multiple times?The ₦50 stamp duty applies to each qualifying transfer. If you make five separate transfers of ₦10,000 or more, you will be charged ₦50 for each of those five transactions.

• I run payroll. Why was I charged? Only merchants who are officially registered and approved as payroll merchants on Paystack are exempt. You can confirm your status on your Compliance page. If you believe you are a registered payroll business but were still charged, please reach out to us for review.

• Can this charge be refunded? No. This is a government-mandated charge. Once it has been applied to a qualifying transfer, Paystack cannot waive or refund the amount.

• Does Paystack charge customers stamp duty when they pay me? No. Paystack does not charge your customers any stamp duty when they pay you via bank transfer (PwT, PwB, or DVA). However, the customer’s bank may charge them a stamp duty for the transfer itself, as mandated by the same law for the sender of funds.

• Does this charge apply to both inflows and outflows? No. This charge only applies to outflows (transfers you send). For inflows (payments you receive), the sender's bank is responsible for deducting the duty from their account

Have further questions? Send an email to support@paystack.com