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ABUJA, NIGERIA – As the 2026 fiscal year takes flight, the Chartered Institute of Taxation of Nigeria (CITN), Abuja District, has moved to quell rising public anxiety regarding the new tax regime. District Chairman Ben Enamuduhas dismissed viral rumors of a “wealth tax” on bank deposits, clarifying that the reforms are specifically engineered to protect low-income earners.
The Bank Balance Myth
In an interview with ARISE News on Wednesday, January 7, 2026, Enamudu addressed the “wrong narrative” that money sitting in bank accounts would be subject to new taxes.
In an interview with ARISE News on Wednesday, January 7, 2026, Enamudu addressed the “wrong narrative” that money sitting in bank accounts would be subject to new taxes.
“Nobody taxes the money in your bank account,” Enamudu stated. He clarified that while a ₦50 stamp duty exists, it is a transactional charge, not a tax on savings.
New Rules for Bank Transfers
Under the act, which became active on January 4, 2026, the rules for electronic transfers have shifted:
Under the act, which became active on January 4, 2026, the rules for electronic transfers have shifted:
- The ₦10,000 Threshold: Transfers below ₦10,000 are entirely exempt from stamp duty.
- Sender Pays Only: Previously, both parties were billed; now, only the sender bears the ₦50 charge.
- Exemptions: Salary payments and transfers between multiple accounts owned by the same person within the same bank are free. However, moving money between your own accounts in differentbanks will still trigger the charge.
Rent Relief and “Pro-Poor” Provisions
Enamudu highlighted a groundbreaking 20% rent relief for tenants, capped at ₦500,000 annually. He emphasized that the 2026 Tax Act is “heavily pro-poor,” exempting essential goods like food, medicine, and education from VAT.
Enamudu highlighted a groundbreaking 20% rent relief for tenants, capped at ₦500,000 annually. He emphasized that the 2026 Tax Act is “heavily pro-poor,” exempting essential goods like food, medicine, and education from VAT.
Who Pays Income Tax?
The Chairman clarified the ₦800,000 exemption threshold, noting it applies to taxable income, not gross earnings. Before tax is calculated, deductions are made for:
The Chairman clarified the ₦800,000 exemption threshold, noting it applies to taxable income, not gross earnings. Before tax is calculated, deductions are made for:
- PENCOM contributions
- NHIS and National Housing Fund (NHF)
- Insurance premiums for self and spouse
- Interest on owner-occupied properties
“If after all these deductions your income is still not above ₦800,000, you will not pay tax,” he explained, adding that the government’s philosophy is to “tax the fruit, not the seed.”
Implementation and Future Growth
With the law now in effect, Enamudu confirmed Nigeria is in a transitional period. He noted that while employers handle PAYE, individuals with multiple income streams (like rent or side businesses) must aggregate and declare them under the self-assessment system. The reforms, backed by President Bola Tinubu, aim to build a “robust fiscal foundation” without necessarily raising the tax burden on the masses.
With the law now in effect, Enamudu confirmed Nigeria is in a transitional period. He noted that while employers handle PAYE, individuals with multiple income streams (like rent or side businesses) must aggregate and declare them under the self-assessment system. The reforms, backed by President Bola Tinubu, aim to build a “robust fiscal foundation” without necessarily raising the tax burden on the masses.