The Chartered Institute of Taxation of Nigeria (CITN) has clarified widespread public confusion surrounding the nation’s recent tax reforms, stating clearly that bank account balances will not be subject to income tax and that the only new charge on electronic funds movements is a flat ₦50 stamp duty on qualifying transfers. The institute’s Abuja District Chairman, Ben Enamudu, explained that the reforms do not include any provision for taxing money held in personal or business accounts.
Enamudu emphasised that the ₦50 stamp duty applies only to electronic transfers of ₦10,000 and above, and is payable only by the sender of the funds. Transfers below ₦10,000, salary payments, and transfers within the same bank account (even across multiple accounts held by the same customer) are exempt from the duty.
Under the new rules, the duty is triggered when money moves between separate financial institutions, even if both accounts belong to the same individual. The revision marks a shift from the previous arrangement where the charge could be shared between sender and recipient.
Tax experts have highlighted that other elements of the reform are aimed at protecting low-income earners, with essential items such as basic food, medications, pharmaceuticals and education remaining exempt from Value Added Tax (VAT). The new law also preserves income thresholds that shield low earners from personal income tax, according to available commentary.
