Nigerian Banks To Apply 10% Withholding Tax On Foreign Currency Deposit Interest From January 2026
Starting January 1, 2026, Nigerian banks will begin applying a 10 percent withholding tax on interest earned from foreign currency deposits.
Access Bank informed its customers on Wednesday via email, explaining that the change takes effect at the start of the new year and aligns with the Nigeria Tax Act, 2025.
The bank also highlighted adjustments to the Electronic Money Transfer Levy: “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 attract a 10% withholding tax,” the bank added, assuring that all collected taxes will be properly remitted to the Federal Government.
This move follows directives from the Nigeria Revenue Service (NRS), formerly the Federal Inland Revenue Service, which in October instructed banks to deduct withholding tax on interest from all short-term investment securities, including payments to non-corporate entities, at the point of payment.
President Bola Tinubu confirmed on December 30 that the tax reforms will take effect as scheduled, describing them as a once-in-a-generation opportunity to build a fair and robust fiscal system without raising the overall tax burden.
