The Chairman of the Chartered Institute of Taxation of Nigeria (CITN), Abuja District, Ben Enamudu, has clarified that Nigeria’s new tax reforms do not impose taxes on bank account balances, stressing that only certain electronic transfers attract a ₦50 stamp duty.
Speaking to ARISE News on Tuesday, Enamudu said misinformation surrounding the reforms, particularly regarding bank transfers and income thresholds, has caused unnecessary public concern. “The narrative going around that money in your bank account will be taxed is false. There is no provision for that in our tax laws,” he said.
He explained that the ₦50 charge applies only to electronic transfers, not deposits or account balances, and that the new law shifts the responsibility solely to the sender. “Previously, both sender and receiver bore the stamp duty. Now, only the sender pays. Transfers below ₦10,000 and salary payments are exempt. Transfers within the same bank also attract no charge,” Enamudu said. Transfers between accounts in different banks still attract the stamp duty, even if both accounts belong to the same person.
Enamudu further highlighted other taxpayer protections under the new regime. Basic food items, medicals, pharmaceuticals, education, and other essentials remain exempt from value-added tax (VAT). Tenants can claim 20% of annual rent paid as relief, capped at ₦500,000. For example, a rent of ₦3 million qualifies for a maximum relief of ₦500,000, while a rent of ₦1 million allows ₦200,000 relief.
On income tax thresholds, he noted that taxable income of ₦800,000 or below is exempt after statutory deductions, including PENCOM contributions, NHIS, National Housing Fund, and insurance premiums. Enamudu also outlined the self-assessment system for tax compliance, noting that while employers remit PAYE for workers, individuals with other income streams must declare them. States will adopt presumptive taxation for informal sector operators, such as market women.
“The tax act is heavily pro-poor and provides protection for low-income earners. Government wants to tax the fruit, not the seed,” he said.
The law came into effect on January 4, 2026, and is currently in a transitional phase, with expectations that greater efficiency will expand the tax base and increase government revenue over time.
