The Chairman of the Chartered Institute of Taxation of Nigeria, Abuja District, Ben Enamudu, clarified misconceptions regarding the country’s new tax regime in an interview with ARISE News. He stated that the claim that bank balances are taxed is erroneous; instead, only specific electronic transfers are subject to a ₦50 stamp duty, aimed to protect low-income earners from undue financial burden. Enamudu emphasized that there is no provision in tax laws for taxing money in bank accounts and that the applicable charge is a stamp duty for electronic transfers exceeding ₦10,000, with various exemptions in place, including salary accounts and transfers below that threshold.

He also outlined that previous regulations required both the sender and receiver to pay the stamp duty, which has now shifted to only the sender. Additionally, he noted that transfers between personal accounts in different banks still incur the stamp duty. Enamudu further commented on value-added tax (VAT), stating that essential goods and services remain exempt from this tax, including basic food items and medications.

Regarding housing, he introduced a rent relief initiative allowing tenants to deduct 20% of their rent, capped at ₦500,000. On compliance, he explained that Nigeria operates a self-assessment tax clearance system, requiring individuals with multiple income streams to aggregate and declare their income. The new tax legislation is also designed to support vulnerable earners, as highlighted by the definition of taxable income being set at ₦800,000 and below, with statutory deductions considered before determining taxable income.

Enamudu confirmed that the law took effect on January 4, 2026, and expressed confidence that the reforms would foster greater efficiency and expand the tax base over time. President Bola Tinubu reiterated the commitment to proceed with the tax reforms, viewing them as a critical opportunity for establishing a fair and robust fiscal framework for Nigeria.