iDeemlawfulNigerian banks will commence the deduction of a 10 per cent withholding tax on interest accrued from foreign currency deposits starting January 1, 2026.
Access Bank disclosed the development in an email sent to customers on Wednesday, detailing adjustments that will take effect on banking transactions from the implementation date.
The bank stated that the deductions are in compliance with provisions of the Nigeria Tax Act, 2025.
“Electronic Money Transfer Levy (N50): Previously charged to the Recipient on transfers of N10,000 or more, this charge will now be deducted from the Sender’s account,” the email reads.
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“Withholding Tax on Foreign Currency Deposits Interest: Interest earned on FCY deposits will now attract a 10% withholding tax.
“Please be assured that all applicable taxes will be duly remitted to the Federal Government in line with regulatory requirements.”
On October 29, the Nigeria Revenue Service (NRS), formerly known as the Federal Inland Revenue Service (FIRS), instructed banks to apply withholding tax deductions on all interest payments relating to short-term investment instruments.
The agency explained that the tax must be deducted from interest payable to any beneficiary, including individuals and other non-corporate entities, at the point of payment.
On December 30, President Bola Tinubu reaffirmed that the rollout of the tax reform laws would proceed as planned on January 1, 2026.
In a statement, Tinubu said the reforms represent a once-in-a-generation chance to establish a fair, competitive and resilient fiscal framework, stressing that they were not introduced to increase taxes.