Nigerian banks have begun deducting a 10 percent withholding tax on interest earned from foreign currency deposits, effective January 1, 2026.
Access Bank, in a notification to customers on Wednesday, said the charge applies to qualifying transactions from the effective date.
The message reads:
“Dear Valued Customer, in line with the Nigeria Tax Act, please be informed that effective January 1, 2026, interest earned on foreign currency deposits will now be subject to a 10 percent withholding tax.”
It added, “Kindly be assured that all taxes will be duly remitted to the Federal Government in line with regulatory requirements. Thank you for trusting Access Bank.”
The bank said the deduction aligns with the Nigeria Tax Act, 2025, which came into force at the beginning of the year as part of a broader overhaul of Nigeria’s tax framework.
President Bola Ahmed Tinubu had earlier maintained that the implementation of the new tax laws would proceed as scheduled, describing the reforms as necessary to broaden the tax base and strengthen government revenue. Under the new framework, interest income is subject to withholding at source, with banks required to deduct and remit the tax on behalf of depositors.
The enforcement is being carried out under the restructured national revenue authority, the Nigeria Revenue Service, which replaced the Federal Inland Revenue Service following the enactment of the law.
