Foreign Currency Deposit Interest attracts 10% as new tax law begins–Banks

Banks have informed customers that with effect from January 1, 2026, yesterday that interest on foreign currency deposit deposits will now attract a 10% withholding tax. Banks operating in Nigeria have have also said that Electronic Money Transfer Levy is now withholding tax. 

In a text message to customers the banks wrote “Important Update” please be informed that, effective January 1, 2026 , the Electronic Money Transfer Levy (EMTL) previously charged on electronic bank transfers of ₦10,000 and above has been replaced by a ₦50 Stamp Duty, in line with the Nigerian Tax Act 2025.

What this change means: A one-off Stamp Duty charge of ₦50 will apply to electronic transfers of ₦10,000 and above (or its equivalent in other currencies)

The ₦50 Stamp Duty will now be charged to the sender’s account. Previously, this charge was deducted from the beneficiary/receiver
Transactions exempt from the ₦50 Stamp Duty include: Electronic transfers below ₦10,000 (or its equivalent in other currencies) Salary payments Intra-bank self-transfers (transfers between accounts of the same owner within the same bank) Withholding Tax on Foreign Currency Deposit Interest:

Interest on FCY deposits will now attract a 10% withholding tax. We remain committed to keeping you fully informed of any changes that may impact your banking transactions.