The Chairman of the Chartered Institute of Taxation of Nigeria (CITN), Ben Enamudu, clarified that Nigerians’ bank balances will not be taxed under the new tax laws. He said the only charge linked to bank accounts is a ₦50 stamp duty on certain electronic transfers, and that the reforms are intended to protect low-income earners.
Enamudu explained that there is no provision in Nigerian tax law for taxing money simply for being in your bank account. The ₦50 fee applies only when money is transferred to another person or account and is classified as stamp duty, not a tax on deposits or savings.
Under the new system, only the sender pays this ₦50 duty; previously, both sender and receiver shared the cost. Transfers below ₦10,000, salary-related payments, and transfers within the same bank (if accounts are linked) are not charged the duty. However, transfers to accounts in different banks will still attract the ₦50 charge.
He also noted that essential items like basic food, medicals, and education are exempt from value-added tax (VAT) under the reforms. Additionally, the tax rules allow rent relief for tenants and clarify that the well-known ₦800,000 threshold applies to taxable income after deductions, not total earnings. The new tax law took effect on January 4, 2026.