Banks in Nigeria will start deducting a 10% withholding tax on interest earned from foreign currency deposits from today, 1 January 2026.
In an email to customers on Wednesday, Access Bank outlined changes that will apply to banking transactions from the effective date.
The financial institution said the deduction aligns with the Nigeria Tax Act, 2025.
The email read: “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”.
On 29 October 2025, the then Federal Inland Revenue Service (now known as the Nigeria Revenue Service) directed banks to deduct withholding tax from all interest payments on short-term investment securities.
The agency said that the tax must be deducted from interests payable to any person, including non-corporate entities, on the date of payment.
Last Tuesday, President Bola Tinubu said that the implementation of the tax reform laws will commence as scheduled from 1 January 2026.
He said that the reforms are a once-in-a-generation opportunity to build a fair, competitive, and robust fiscal foundation, and they are not designed to raise taxes.
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