Access Bank Notifies Customers as Nigeria’s New Tax Reforms Take Effect in 2026
Nigerian banks will begin deducting a 10 per cent withholding tax on interest earned from foreign currency deposits starting January 1, 2026, as part of the implementation of the country’s new tax laws.
Access Bank disclosed the development in an email sent to customers on Wednesday, outlining key changes that will apply to banking transactions from the effective date.
According to the bank, the deductions are in compliance with the Nigeria Tax Act, 2025, which forms part of the Federal Government’s ongoing tax reform agenda.
Changes to Transfers and FX Deposit Interest
In the notice to customers, Access Bank explained that the Electronic Money Transfer Levy (EMTL) would now be charged differently.
Under the new arrangement, the N50 levy on transfers of N10,000 and above, which was previously deducted from the recipient, will now be charged to the sender’s account.
The bank also confirmed that interest earned on foreign currency (FCY) deposits will henceforth attract a 10 per cent withholding tax.
Access Bank assured customers that all deductions would be remitted to the Federal Government in line with existing regulatory and legal requirements.
Earlier Directive on Withholding Tax
The development follows an earlier directive issued on October 29 by the Nigeria Revenue Service (NRS), formerly known as the Federal Inland Revenue Service (FIRS).
The agency had instructed banks and financial institutions to deduct withholding tax from interest payments on short-term investment securities, regardless of whether the beneficiary is a corporate or non-corporate entity.
According to the directive, the tax must be deducted at the point interest is paid.
Tinubu Confirms January 1 Take-off
On December 30, President Bola Ahmed Tinubu reaffirmed that the implementation of the tax reform laws would commence as scheduled on January 1, 2026.
In a statement, the President described the reforms as a once-in-a-generation opportunity to establish a fair, competitive and sustainable fiscal framework for Nigeria, stressing that the new laws are not intended to increase taxes, but to improve efficiency and equity in revenue collection.
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