Nigerian banks will begin deducting a 10 percent withholding tax on interest earned from foreign currency (FCY) deposits, starting January 1st 2026
Access Bank disclosed the update in an email sent to customers on Wednesday, detailing adjustments that will take effect from the new year. According to the bank, the changes are in line with provisions of the Nigeria Tax Act, 2025.
“Electronic Money Transfer Levy (N50): Previously charged to the Recipient on transfers of N10,000 or more, this charge will now be deducted from the Sender’s account.”
“Withholding Tax on Foreign Currency Deposits Interest: Interest earned on FCY deposits will now attract a 10% withholding tax.”
“Please be assured that all applicable taxes will be duly remitted to the Federal Government in line with regulatory requirements.”
The announcement follows earlier directives from the Nigeria Revenue Service (NRS), formerly known as the Federal Inland Revenue Service (FIRS). On October 29, the agency instructed banks to begin deducting withholding tax on interest payments from short-term investment securities, stressing that the deduction applies to interest paid to all persons, including non-corporate entities, at the point of payment.
Reaffirming the timeline, President Bola Tinubu said on December 30 that the implementation of the tax reform laws would commence as planned on January 1, 2026. He described the reforms as a landmark effort to establish a stronger and more equitable fiscal framework, noting that they are not intended to increase the overall tax burden.
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