From January 1, 2026, Nigerian banks will start deducting a 10 percent withholding tax on interest earned from foreign currency deposits.
Access Bank informed customers on Wednesday that the new measure, which takes effect at the start of the year, is in line with the Nigeria Tax Act, 2025.
The bank also announced changes to the Electronic Money Transfer Levy, stating that “previously charged to the recipient on transfers of N10,000 or more, this charge will now be deducted from the sender’s account.”
Interest earned on foreign currency deposits will now be subject to a 10% withholding tax, with all applicable taxes remitted to the Federal Government as required by law.
The development follows a directive from the Nigeria Revenue Service (NRS), formerly the Federal Inland Revenue Service, which in October instructed banks to deduct withholding tax on interest payments from all short-term investment securities, including those owed to non-corporate entities.
President Bola Tinubu reiterated on December 30 that the tax reforms would begin as scheduled, emphasizing that the changes aim to create a fairer and stronger fiscal framework rather than increase the overall tax burden.
