Nigerian banks will begin deducting a 10% withholding tax on interest earned from foreign currency (FCY) deposit accounts starting January 1, 2026, in line with the new Nigeria Tax Act, 2025.
What it means for customers:
If you earn interest on a domiciliary or other foreign currency deposit in a Nigerian bank, that interest will now be taxed at the point of payment the bank will automatically withhold 10% and remit it to the Federal Government.
The change applies across deposit accounts earning FCY interest, reducing the net interest you receive.
Who has confirmed it
Banks such as Access Bank have already informed customers of the deduction requirement under the new tax law.
Why it’s happening
This move is part of broader tax reforms under the Nigeria Tax Act, 2025, which is being implemented from the start of 2026 as part of efforts to strengthen revenue collection.
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