Nigerian Banks Set To Enforce 10% Tax On Interest From Foreign Currency Accounts Starting January 1, 2026

 

Nigerian banks will begin deducting a 10 percent withholding tax on interest earned from foreign currency deposits with effect from January 1, 2026.

Access Bank announced the development in an email circulated to customers on Wednesday, informing them of upcoming changes to banking operations that will take effect from the new year. The bank explained that the deduction will be applied automatically to interest accrued on foreign currency and domiciliary accounts.

According to the notice, the policy is in line with the provisions of the Nigeria Tax Act, 2025, which introduced taxation on interest income from foreign currency deposits. The tax will be deducted at source by banks and remitted to the appropriate tax authorities, meaning customers will receive net interest after the deduction.

The move is expected to standardise the taxation of investment and savings income across different account types and may affect individuals and businesses that maintain foreign currency accounts primarily for interest earnings.