The Chairman of the Chartered Institute of Taxation of Nigeria (CITN), Abuja District, Ben Enamudu, has dismissed widespread claims that Nigerians’ bank balances are being taxed under the country’s new tax regime, clarifying that only certain electronic transfers attract a ₦50 stamp duty.
Speaking during an interview on ARISE News on Tuesday, Enamudu said misinformation surrounding the reforms—particularly claims about bank transfers and income thresholds—has generated unnecessary anxiety among the public.
“The narrative out there, which is the wrong narrative, is that the money in your bank account will be taxed. There is no provision for that in our tax laws. Nobody taxes the money in your bank account,” he said.
According to Enamudu, what applies to some electronic transactions is a stamp duty, not a tax on deposits or account balances. He explained that a ₦50 stamp duty is charged when funds are transferred electronically from one account to another, provided certain conditions are met.
“When you make transfers from your account to someone else, there is a ₦50 stamp duty that applies. However, if you maintain multiple accounts within the same bank, you are not expected to pay the stamp duty,” he noted.
He added that the new reforms have altered who bears the cost of the duty. Previously, both the sender and receiver shared the burden, but under the revised framework, only the sender is charged.
Enamudu outlined several exemptions, stressing that salary-related transactions are protected. “Salary accounts and payment of salaries are exempted from stamp duty. Transfers below ₦10,000 are also exempted. Once it hits ₦10,000, you pay the ₦50 charge,” he said. Transfers between personal accounts held in different banks, however, still attract the duty.
Beyond electronic transfers, Enamudu said essential goods and services remain exempt from value-added tax (VAT), including basic food items, medical services, pharmaceuticals and education. He also highlighted a rent relief provision introduced by the reforms, allowing tenants to claim a 20 per cent relief on rent paid, capped at ₦500,000 annually.
On tax compliance, Enamudu explained that Nigeria operates a self-assessment system, requiring individuals to voluntarily declare all income streams. While employers remit Pay As You Earn (PAYE) for salaried workers, individuals earning rent or business income must file returns themselves. States, he added, would adopt presumptive taxation models for informal sector operators such as market traders.
Addressing concerns about fairness, Enamudu described the new tax law as “heavily pro-poor”. He clarified that the much-discussed ₦800,000 threshold refers to taxable income after statutory deductions, not gross earnings. Deductions include pension contributions, health insurance, housing fund payments, mortgage interest and insurance premiums.
“The act became active on 4 January 2026. We are already at the implementation stage, though this is a transitional period,” he said, adding that improved efficiency would gradually expand the tax base and strengthen government revenue without overburdening low-income earners.
