Nigerians and investors have expressed growing frustration over the implementation of a 10 percent Withholding Tax (WHT) on interest earned from savings and short-term investments.
Over the past three days, many aggrieved investors have taken to social media platforms, particularly X, to vent their displeasure, as several fintech banks commenced the deduction of the 10 percent WHT on earned interest.
In reports that while some investors believe the deductions are linked to the new tax laws that took effect on January 1, 2026, others argue that the policy predates the new regime
Recall that in October 2025, the then Federal Inland Revenue Service, now the Nigeria Inland Revenue, directed banks to begin collecting 10 percent WHT on interest earned from short-term investments, which had previously been exempted to encourage higher returns.
Following the introduction of the new tax laws, some banks— particularly fintech institutions— have now begun enforcing the WHT on interest, a move that has stirred widespread frustration among investors.
Reacting to the controversy, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, clarified that WHT on interest was not introduced by the new tax laws.
“Withholding tax on interest has always been in the law. Why is it being attributed to the new law?” He queried in a telephone interview with DAILY POST on Monday.
Adding another perspective, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, stressed the need for more public education to address confusion surrounding Nigeria’s evolving tax regime.