According to **News Central (citing the Nigeria Tax Act 2025)**, Nigerian commercial banks have officially commenced the automatic deduction of a 10 percent tax on interest earned from foreign-currency savings. This new fiscal measure, part of the government’s revenue-generation drive, applies to all domiciliary and dollar-denominated accounts held by individuals and corporate entities.
Financial institutions, including major lenders like Access Bank and Zenith Bank, are now acting as collecting agents for the Federal Government. The policy aims to capture more revenue from the country’s significant foreign exchange deposits, which have grown as Nigerians hedge against local currency volatility.
The implementation was also tracked by **BusinessDay** and **The Cable**. **BusinessDay** highlighted that “savers will now see their net returns trimmed as the government looks for new revenue streams,” while **The Cable** quoted a banking source saying, “the system integration for automated remittance is now fully operational across all branches.”
**Echotitbits take:** While this helps the government’s bottom line, it may discourage long-term dollar savings within the formal banking sector. Watch for a potential move toward offshore accounts or fintech alternatives as savers look to protect their yields from domestic tax erosion.
Source: The Cable – https://www.thecable.ng/banks-to-begin-10-withholding-tax-deduction-on-foreign-currency-deposits-interest-jan-1/, May 10, 2026
Photo credit: Legit.NG
