KEY POINTS

• Nigeria new tax regime does not tax bank balances.
• Only certain transfers attract a ₦50 stamp duty.
• Low-income earners receive expanded exemptions and reliefs.

Nigeria’s new tax regime does not impose taxes on bank account balances, contrary to widespread claims circulating online, according to Ben Enamudu, chairman of the Chartered Institute of Taxation of Nigeria’s Abuja District.

Speaking in an interview on Tuesday, Enamudu said confusion around the reforms has fueled unnecessary anxiety, particularly over electronic transfers and income thresholds. He stressed that existing tax laws contain no provision allowing the government to tax money held in personal bank accounts.

“What applies to transfers is a stamp duty, not a tax on your savings or balance,” Enamudu said, adding that misinformation has distorted public understanding of the changes. He said the reforms, which took effect on January 4, 2026, form part of a broader overhaul to widen the tax base while protecting vulnerable earners.

Nigeria new tax regime and bank transfers

Under the Nigeria new tax regime, certain electronic transfers attract a flat ₦50 stamp duty, payable only by the sender. Enamudu said the duty applies when funds move from one account to another across financial institutions.

Transfers below ₦10,000 are exempt, as are salary payments and transfers between multiple accounts held by the same customer within one bank. By contrast, transfers between personal accounts in different banks still trigger the charge. Previously, both senders and receivers bore the cost of stamp duty. The reform shifts that obligation entirely to the sender, he said.

Visa-like guarantees or levies on deposits do not exist under Nigerian tax law, Enamudu emphasized, noting that stamp duty is a long-standing statutory charge distinct from income taxation.

Nigeria new tax regime targets low earners

Beyond transfers, Enamudu said the Nigeria new tax regime preserves exemptions on essential goods and services, including basic food items, medical services, pharmaceuticals and education, which remain outside the value-added tax net.

Tenants are also eligible for rent relief equal to 20 percent of annual rent paid, capped at ₦500,000. The relief applies after deductions and is designed to ease housing costs for urban workers.

On income taxation, Enamudu clarified that the often-cited ₦800,000 threshold refers to taxable income after statutory deductions, not gross earnings. Tax authorities deduct contributions to pension schemes, health insurance, housing funds, insurance premiums, and interest on owner-occupied homes before assessing tax liability.

Nigeria operates a self-assessment system, with employers remitting PAYE for workers while individuals with additional income streams must file returns. States, he said, will rely on presumptive taxation to capture informal operators such as market traders.

President Bola Tinubu has said the reforms are intended to reset Nigeria’s fiscal framework, improve efficiency and protect dignity, rather than raise taxes outright.