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
Aradel Holdings Plc has extended the filing of its 2025 audited financial statements and first-quarter 2026 unaudited financial statements after failing to meet its previously announced May 29, 2026, target.
The company disclosed in a notice to the Nigerian Exchange (NGX) Limited, shareholders and the investing public that both reports will now be released on or before June 19, 2026, citing challenges arising from the consolidation of its recently acquired additional 40 per cent equity interest in ND Western Limited.
Aradel had earlier informed the market on March 2, 2026, that the delay in filing its financial results was linked to the acquisition and subsequently indicated that the reports would be released on or before May 29, 2026.
The organisation said unforeseen complexities emerged during the consolidation process following the integration of the newly acquired stake into the group’s reporting framework.
According to the notice, “The delay is due to unforeseen complexities encountered in the consolidation process arising from the integration of the newly acquired interest in ND Western Limited into the Group’s reporting framework. Additional time is required to ensure that the consolidated results fairly present the financial position of the enlarged Group in line with applicable accounting standards and regulatory requirements.”
“The company is working closely with its external auditors to complete the process without compromising the quality, accuracy or integrity of the financial statements. Both the FY 2025 Audited Financial Statements and the Q1 2026 Unaudited Interim Financial Statements will now be released on or before 19 June 2026,” Aradel said.
The extension means the company’s closed period, which commenced on January 1, 2026, will remain in effect until 24 hours after the financial statements are released to the market. During the closed period, insiders and other restricted persons are prohibited from trading in the company’s shares.
The energy firm noted that trading in its securities by affected persons would resume after the expiration of the extended closed period. The oil producer further reiterated its commitment to regulatory compliance and transparency in its financial reporting.
By Dipo Olowookere
The last trading session of the week on the floor of the Nigerian Exchange (NGX) Limited ended on a positive note with a 0.26 per cent growth on Friday.
It was the first trading day after the two-day break observed on Wednesday and Thursday for Sallah celebrations by Muslims.
Market participants returned to Customs Street yesterday in high spirits, though keeping an eye on happenings in the macroeconomic environment.
This resulted in the market breadth index closing bearish after recording 32 price gainers and 33 price losers, implying weak investor sentiment.
Sovereign Trust Insurance and Zichis gained 10.00 per cent each to sell for N2.75 and N33.00 apiece, International Energy Insurance rose by 9.98 per cent to N4.52, McNichols grew by 9.85 per cent to N8.70, and Aradel Holdings increased by 9.59 per cent to N1,933.80.
Conversely, the trio of CAP, Austin Lax, and Premier Paints lost 10.00 per cent each to settle at N179.10, N3.96, and N33.75 apiece, LivingTrust Mortgage Bank decreased by 9.89 per cent to N4.01, and John Holt fell by 9.84 per cent to N16.95.
As for the performance of the key market sectors yesterday, the banking space shed 2.51 per cent, the consumer goods index depleted by 1.26 per cent, and the industrial goods sector tumbled by 0.05 per cent.
However, bargain-hunting raised the energy segment by 4.38 per cent and lifted the insurance counter by 0.86 per cent.
Consequently, the All-Share Index (ASI) closed higher by 646.63 points to 250,385.47 points from 249,738.84 points, and the market capitalisation improved by N415 billion to N160.509 trillion from N160.094 trillion.
A total of 1.2 billion stocks worth N43.4 billion exchanged hands in 93,626 deals during the session compared with the 564.1 million stocks valued at N27.2 billion traded in 65,666 deals in the preceding session. This showed that the trading volume, value, and number of deals went up by 112.73 per cent, 59.56 per cent, and 42.58 per cent, respectively.
Fidelity Bank ended the day as the busiest equity with a turnover of 483.0 million units valued at N8.7 billion, Access Holdings transacted 133.3 million units worth N3.2 billion, The Initiates sold 81.7 million units for N2.2 billion, Chams exchanged 43.9 million units valued at N173.8 million, and Dangote Sugar traded 28.4 million units worth N2.0 billion.
By Adedapo Adesanya
The Naira returned from a two-day break on Friday, May 29, stronger against the United States Dollar by 16 Kobo or 0.01 per cent in the Nigerian Autonomous Foreign Exchange Market (NAFEX), trading at N1,375.25/$1 compared with N1,375.41/$1 it was exchanged on Tuesday.
The local currency also appreciated in the same market window against the Pound Sterling during the trading session by N3.62 to sell for N1,848.62/£1 versus N1,852.26/£1, but lost N2.16 against the Euro to close at N1,601.48/€1 compared with the previous rate of N1,599.32/€1.
The official forex market was closed on Wednesday and Thursday for the Sallah break.
A look at the GTBank FX desk showed that the Naira gained N4 against the Dollar yesterday to quote at N1,379/$1, in contrast to Tuesday’s closing value of N1,383/$1, and at the black market, it improved its value by N5 to N1,380/$1 versus the preceding session’s N1,385/$1.
Market analysts noted that the Nigerian Naira outlook remains stable, citing the latest round of FX inflows, which have lifted gross external reserves to $49.259 billion. Some projected that the domestic currency will close the first half of 2026 stronger as the Central Bank of Nigeria (CBN) continues to inject FX inflows into the official market.
Also supporting expected stability is the continued government signal of growth. In his third year in office, in a speech on Friday, President Bola Tinubu inherited severe economic and structural challenges in 2023, including exchange-rate distortions, which he said have since been reformed.
“Multiple exchange rate windows and forex arbitrage created massive distortions, with Nigeria losing more than N8 trillion over three years to rent-seeking and speculative practices.”
According to the president, the situation required urgent and courageous decisions to avert a deeper economic crisis and fiscal collapse.
In the cryptocurrency market, US-Iran ceasefire hopes have failed to pull Bitcoin (BTC) and Ethereum (ETH) higher, with the two largest cryptocurrencies losing almost 3 per cent as cooling spot bitcoin ETF inflows reinforced the pullback. BTC dropped 0.3 per cent to sell for $73,456.95, while ETH dipped 0.1 per cent to trade at $2,013.29.
Further, TRON (TRX) went down by 2.1 per cent to $0.3427, and Cardano (ADA) dipped 0.4 per cent to close at $0.2348.
On the other hand, Binance Coin (BNB) jumped 4.7 per cent to $667.52, Ripple (XRP) grew by 2.00 per cent to $1.34, and Solana (SOL) expanded by 0.1 per cent to $82.27, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
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