The Chartered Institute of Taxation of Nigeria has clarified that Nigerians are not being taxed on money kept in their bank accounts under the new tax reforms, saying only certain electronic transfers attract a ₦50 stamp duty.
The Chairman of the CITN Abuja District, Ben Enamudu, made this known during an interview on ARISE News on Tuesday, following widespread concerns and misinformation about the new tax regime.
According to him, claims that bank balances will be taxed are false and not supported by any Nigerian tax law.
“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,” Enamudu said.
He explained that the ₦50 charge applies only to electronic transfers and is a stamp duty, not a tax on deposits or savings.
“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,” he said.
Enamudu added that the new reforms have also changed who pays the charge.
“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 explained.
He noted that several transactions are exempt from the stamp duty, including salary payments and small transfers.
“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,” Enamudu said.
He clarified that transfers between personal accounts in different banks still attract the charge.
“Once it crosses one financial institution to another, the stamp duty is triggered, even if it is your own account,” he said.
On other aspects of the reform, Enamudu said essential goods and services remain free from value-added tax.
“You don’t pay VAT on basic food items, medicals, pharmaceuticals, education and other essentials,” he stated.
He also highlighted a new tax relief for tenants.
“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,” he said.
Giving examples, he explained, “If your rent is ₦3 million annually, 20 per cent is ₦600,000, but the relief is capped at ₦500,000. If your rent is ₦1 million, then your relief is ₦200,000.”
On tax compliance, Enamudu said Nigeria operates a self-assessment system.
“The law envisages that you will come forward voluntarily and declare your income,” he said.
While employers remit Pay-As-You-Earn taxes for workers, he said individuals with other sources of income must declare them.
“Your salary income is just one line. If you earn rent or run a business, all incomes must be aggregated and declared,” he explained.
He added that states will adopt presumptive taxation for informal sector workers such as market women.
“Market women fall under the informal sector. States will determine structures and modalities, considering the principle of economy,” he said.
Addressing fears about the impact of the reforms, Enamudu described the new tax law as favourable to low-income earners.
“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.
“It is not that if you earn ₦800,000, you don’t pay tax. The law says if your taxable income is ₦800,000 and below,” he said.
According to him, deductions such as pension contributions, health insurance, housing fund payments, insurance premiums and mortgage interest are removed before taxable income is calculated.
“After all these deductions, if your income is still not above ₦800,000, you will not pay tax,” Enamudu said.
He confirmed that the new tax 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.
Enamudu added that improved efficiency would help expand the tax base 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 said.
President Bola Tinubu had earlier stated that the new tax laws are not meant to increase the tax burden but to create a fairer and more balanced fiscal system while protecting vulnerable Nigerians.
