Nigerian banks are set to begin deducting a 10 per cent withholding tax on interest earned from foreign currency and domiciliary accounts starting January 1, 2026.
The development was communicated by Access Bank in an email sent to customers.
It outlined operational changes scheduled to take effect in the new year.
According to the notice, the tax will be automatically deducted from interest accrued on eligible foreign currency deposits.
The bank explained that the measure aligns with provisions of the Nigeria Tax Act, 2025.
This is formally introduced taxation on interest income from foreign currency holdings.
Under the new framework, banks will deduct the tax at source and remit it to the appropriate tax authorities, ensuring customers receive net interest after deductions.
The policy is expected to standardise taxation across savings and investment income
Also, to bring foreign currency accounts in line with existing tax treatments on other interest-bearing accounts.
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Individuals and businesses that maintain domiciliary accounts primarily for interest income may feel the impact most.
