By Ayo Kehinde
The Chartered Institute of Taxation of Nigeria (CITN) has dismissed reports suggesting that Nigerians’ bank savings are being taxed under the country’s new tax regime, clarifying that only specific electronic transfers attract a ₦50 stamp duty.
Speaking during an interview on Arise News, the Chairman of the CITN, Abuja District, Mr. Ben Enamudu, said the ongoing tax reforms are designed to protect low-income earners and promote fairness in the tax system, noting that widespread misinformation has created unnecessary public concern.
According to Enamudu, there is no provision in Nigeria’s tax laws that permits the taxation of funds held in personal 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 stated.
He explained that under the Nigeria Tax Act 2025, which took effect on January 1, 2026, the applicable charge is a ₦50 stamp duty—formerly known as the Electronic Money Transfer Levy (EMTL)—on eligible electronic transfers of ₦10,000 and above.
He clarified that the duty does not apply to transfers between multiple accounts held within the same bank by an individual where the names and BVN/NIN match.
“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 said.
He further clarified that under the new reform, only the sender bears the cost of the stamp duty, a shift from the previous system where the charge was typically deducted from the receiver.
He also disclosed that salary accounts and the payment of salaries are exempt from stamp duty, while electronic transfers below ₦10,000 attract no charge. “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 explained.
However, he noted that transfers between personal accounts held in different banks still attract the 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 (VAT), the CITN chairman reassured Nigerians that essential goods and services remain exempt. “You don’t pay VAT on basic food items, medicals, pharmaceuticals, education and other essentials,” he stated. He urged Nigerians to rely on verified information, stressing that the reforms are aimed at enhancing transparency, equity, and public confidence in the nation’s tax system.
