Economy
FG Won’t Tax Bank Balances—CITN
By Adedapo Adesanya
The Chartered Institute of Taxation of Nigeria (CITN) has dismissed claims that bank balances are taxable under Nigeria’s new tax regime, saying only certain electronic transfers attract a N50 stamp duty and that the reforms are designed to shield low-income earners.
The Chairman of the taxation body for Abuja District, Mr Ben Enamudu, made this known while speaking in an interview with Arise News on Tuesday as part of efforts to educate and correct misconceptions around the new regulations.
Mr Enamudu said misinformation about the reforms, particularly around bank transfers and income thresholds, has caused panic among Nigerians.
“The narrative out there, which is the wrong narrative, is that the money in your bank account will be taxed. There is no provision for that in our tax laws. Nobody taxes the money in your bank account,” he said on the programme, explaining that the charge applicable to electronic transfers is a stamp duty, not a tax on deposits or account balances.
“When you make transfers from your account to someone else, there is a N50 stamp duty that applies. However, if you maintain multiple accounts within the same bank, you are not expected to pay the stamp duty,” Mr Enamudu said, noting that the reform also changes who bears the cost of the duty.
“Before now, both the sender and the receiver bore the burden of the stamp duty. But with the new tax reform, only the sender pays,” he said.
Mr Enamudu said several transactions are exempt from the charge.
“Salary accounts and payment of salaries are exempted from stamp duty. Transfers below N10,000 are also exempted. Once it hits N10,000, you pay the N50 charge,” he said.
He added that transfers between personal accounts held in different banks still attract stamp duty.
“Once it crosses one financial institution to another, the stamp duty is triggered, even if it is your own account,” he said.
Mr Enamudu also noted that essential goods and services remain exempt from Value-Added Tax (VAT).
“You don’t pay VAT on basic food items, medicals, pharmaceuticals, education and other essentials,” he said.
Speaking on another point: housing, he highlighted a rent relief introduced under the reforms.
“If you pay rent as a tenant, you are allowed a relief of 20 per cent of the rent paid, subject to a maximum of N500,000,” he said
“If your rent is N3 million annually, 20 per cent is N600,000, but the relief is capped at N500,000. If your rent is N1 million, then your relief is ₦200,000,” he said.
Mr Enamudu also said the country operates a self-assessment system for tax clearance.
“The law envisages that you will come forward voluntarily and declare your income,” he said.
While employers remit PAYE for workers, he said individuals with other income streams must file returns themselves.
“Your salary income is just one line. If you earn rent or run a business, all incomes must be aggregated and declared,” he said.
He added that states would adopt presumptive taxation for informal operators such as market women.
“Market women fall under the informal sector. States will determine structures and modalities, considering the principle of economy,” he said.
Addressing broader concerns about the impact of the reforms, Mr Enamudu described the new tax law as protective of vulnerable earners.
“The tax act as passed is heavily pro-poor. That is actually the reality of the act,” he said.
He clarified that the often-cited N800,000 figure refers to taxable income, not total earnings.
“The narrative out there also needs correction. It is not that if you earn N800,000, you don’t pay tax. The law says if your taxable income is N800,000 and below,” he clarified.
By Adedapo Adesanya
Nigeria’s pension fund assets surged by 22 per cent or N4.94 trillion to N27.45 trillion in 2025 from N22.51 trillion in 2024, according to the latest data from the National Pension Commission (PenCom).
The year-on-year growth underscores the resilience of the Contributory Pension Scheme (CPS), supported by steady employer and employee contributions, improved compliance and stronger investment returns across fixed income and equities.
The achievement capped a year of uninterrupted monthly expansion, reinforcing the sector’s role as one of Nigeria’s most stable pools of long-term domestic capital, despite a challenging macroeconomic environment, an industry analyst said.
Pension assets rose progressively from N22.86 trillion in January 2025 to N23.26 trillion in February and N23.38 trillion in March. By mid-year, assets had climbed to N24.62 trillion, before accelerating in the second half to N25.89 trillion in August, N26.66 trillion in October, N27.05 trillion in November and ultimately N27.45 trillion in December.
On a year-on-year basis, the industry expanded significantly. Total pension assets stood at N22.51 trillion in December 2024. The increase of N4.94 trillion over 12 months translates to approximately 22 per cent growth, reflecting both fresh contributions and investment returns.
The 12-month growth and broader annual expansion are driven by three primary factors: sustained pension contributions, investment income across asset classes, and the expansion of RSA funds.
Mandatory employer and employee contributions under the CPS continued to provide steady inflows, supported by improved compliance among corporate employers, and the expansion of coverage contributed to the accumulation of assets throughout the year.
PFAs benefited from improved yields in fixed income markets and positive performance in domestic equities during parts of the year. Both realised and unrealised gains contributed to the increase in assets under management, while the bulk of the growth came from Retirement Savings Account (RSA) Funds, particularly Funds II and III, which account for the largest share of contributors.
RSA Fund II, the default fund for active contributors below 50 years, grew from N9.24 trillion in December 2024 to N11.52 trillion in December 2025, an increase of N2.28 trillion.
RSA Fund III rose by about N1.10 trillion to N7.02 trillion, while RSA Fund IV, designed for retirees, also recorded significant growth, adding roughly N630 billion during the year.
These three funds collectively represent the core of pension savings within the system and were instrumental in driving the overall asset expansion.
A review of portfolio composition shows that federal government securities remained the dominant investment class, accounting for the largest share of pension assets. Holdings in FGN bonds and treasury bills continued to provide stability and predictable returns.
Corporate debt securities and money market instruments also contributed meaningfully, offering attractive yields amid tight monetary conditions. Meanwhile, domestic equities supported asset growth during market rallies, helping diversify returns.
The balanced allocation across fixed income, equities and other instruments helped cushion portfolios against volatility while sustaining steady growth in total assets.
With assets at N27.45 trillion, the sector continues to deepen its role in long-term domestic capital formation.
By Adedapo Adesanya
There was a 0.92 per cent correction at the NASD Over-the-Counter (OTC) Securities Exchange on Tuesday, February 17, pushed by declines in the share prices of 11 Plc and Central Securities Clearing System (CSCS) Plc.
11 Plc lost N28.80 during the session to trade at N263.00 per share compared with the previous day’s N291.80 per share, and CSCS Plc weakened by N4.84 to N75.25 per unit from N80.09 per unit.
Consequently, the NASD Unlisted Security Index (NSI) slid by 36.87 points to 3,964.55 points from 4,001.42 points, and the market capitalisation lost N22.06 billion to end N2.372 trillion compared with Monday’s value of N2.394 trillion.
Business Post reports that there were five price gainers yesterday, which could not lift the market.
They were led by FrieslandCampina Wamco Nigeria Plc, which appreciated by N5.89 to N77.24 per share from N71.35 per share, First Trust Mortgage Bank Plc grew by 8 Kobo to 90 Kobo per unit from 82 Kobo per unit, Geo-Fluids Plc increased by 8 Kobo to N3.58 per share from N3.50 per share, Lagos Building Investment Company (LBIC) Plc gained 7 Kobo to close at N3.48 per unit versus N3.41 per unit, and Acorn Petroleum Plc added 2 Kobo to sell at N1.33 per share compared with the previous day’s N1.31 per share.
During the session, the volume of transactions slid 91.0 per cent to 4.2 million units from 46.2 million units, the value of trades declined 88.4 per cent to N61.9 million from N532.8 million, and the number of deals shrank 2.3 per cent to 43 deals from 44 deals.
CSCS Plc remained the most active stock by value (year-to-date) with 31.9 million units exchanged for N1.9 billion, trailed by Resourcery Plc with 1.05 billion units worth N408.6 million, and Geo-Fluids Plc with 71.8 million units valued at N299.1 million.
The most traded stock by volume (year-to-date) remained Resourcery Plc with 1.05 billion units sold for N408.6 million, followed by Geo-Fluids Plc with 71.8 million transacted for N299.1 million, and CSCS Plc with 31.9 million units traded for N1.9 billion.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited suffered a 0.47 per cent decline on Tuesday a day after hitting all-time highs in its key performance barometers.
This was influenced by profit-taking in Nigerian stocks, as investors cashed out from the gains recorded in the past trading sessions.
According to data, the All-Share Index (ASI) was down by 899.50 points during the session to 189,362.94 points from the preceding session’s 190,262.44 points, and the market capitalisation decreased by N577 billion to N121.553 trillion from the N122.130 trillion achieved a day earlier.
Business Post reports that the sell-offs were intense yesterday as four of the sectors tracked ended in the red.
The consumer goods space improved by 2.54 per cent, but this was not enough to save Customs Street from crumbling when market activity ended at 2:30 pm.
The banking index was down by 3.69 per cent, the insurance space tumbled by 0.57 per cent, the industrial goods counter depleted by 0.50 per cent, and the energy sector dipped 0.06 per cent.
Despite the loss, the market breadth index remained positive after the bourse closed with 44 price gainers and 40 price losers, implying strong investor sentiment.
The trio of Mecure, SAHCO, and Zenith Bank gave up 10.00 per cent each to trade at N93.60, N117.00, and N80.55 apiece, while RT Briscoe depreciated by 9.95 per cent to N14.12, and Tripple G crashed by 9.77 per cent to N6.00.
Conversely, ABC Transport zoomed off by 9.94 per cent to N9.07, Zichis jumped 9.93 per cent to N13.06, Red Star Express appreciated by 9.87 per cent to N29.50, Meyer grew by 9.81 per cent to N22.95, and Japaul increased by 9.78 per cent to N3.03.
As for the activity chart, investors traded 1.2 billion stocks worth N60.2 billion in 86,607 deals compared with the 1.1 billion stocks valued at N64.0 billion transacted in 64,821 deals on Monday, representing a fall in the trading value by 5.94 per cent, and a surge in the trading volume and number of deals by 9.09 per cent and 33.61 per cent apiece.
Access Holdings ended the session as the busiest equity after the sale of 103.5 million units for N2.7 billion, Zenith Bank traded 93.1 million units valued at N8.0 billion, Japaul transacted 73.8 million units for N223.6 million, First Holdco exchanged 54.3 million units worth N2.6 billion, and Secure Electronic Technology sold 45.9 million units valued at N83.3 million.
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