The Chairman of the Chartered Institute of Taxation of Nigeria (CITN), Abuja District, Ben Enamudu, has dismissed claims that Nigerians’ bank balances are taxed under the newly implemented tax regime, describing such reports as misinformation that has caused unnecessary anxiety.
Speaking during an interview with ARISE News on Tuesday, Enamudu clarified that Nigeria’s tax laws do not provide for taxation of money held in bank accounts.
“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 him, what applies to certain electronic transfers is a ₦50 stamp duty, not a tax on deposits or account balances.
“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,” Enamudu explained.
He added that the new tax reforms also redefine who bears the cost of the stamp duty.
“Before now, both the sender and the receiver bore the burden of the stamp duty. But with the new tax reform, only the sender pays,” he said.
Enamudu noted that several transactions are exempt from the charge, including salary-related payments.
“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.
However, he clarified that transfers between personal accounts held in different banks still attract stamp duty.
“Once it crosses one financial institution to another, the stamp duty is triggered, even if it is your own account,” he said.
On value-added tax, the CITN chairman said essential goods and services remain exempt.
“You don’t pay VAT on basic food items, medicals, pharmaceuticals, education and other essentials,” he stated.
He also highlighted a rent relief introduced under the new tax framework.
“If you pay rent as a tenant, you are allowed a relief of 20 per cent of the rent paid, subject to a maximum of ₦500,000,” Enamudu said, explaining that while 20 per cent of ₦3 million rent amounts to ₦600,000, the relief is capped at ₦500,000, whereas a ₦1 million rent attracts a ₦200,000 relief.
On compliance, Enamudu explained that Nigeria operates a self-assessment tax system, where individuals are expected to voluntarily declare their income.
“Your salary income is just one line. If you earn rent or run a business, all incomes must be aggregated and declared,” he said, adding that employers remit PAYE for workers, while individuals with other income streams must file returns themselves.
He also said state governments would apply presumptive taxation to operators in the informal sector, such as market women.
“States will determine structures and modalities, considering the principle of economy,” he said.
Addressing broader concerns, Enamudu described the new tax law as pro-poor, stressing that low-income earners are well protected.
“The tax act as passed is heavily pro-poor. That is actually the reality of the act,” he said.
He clarified that the widely discussed ₦800,000 threshold refers to taxable income, not total earnings.
“After deductions for PENCOM, NHIS, National Housing Fund, insurance premiums, and interest on owner-occupied properties, if your taxable income is not above ₦800,000, you will not pay tax,” he explained.
Enamudu confirmed that the law is already in force.
“The act became active on the 4th of January 2026. We are already at the implementation stage, though this is a transitional period,” he said.
He expressed optimism that improved efficiency would expand the tax base and boost government revenue over time.
“When efficiency comes into the tax environment, more people and businesses are captured. Over time, revenue will grow, and the government will be able to meet its obligations,” he added.
