For upwards of a decade-and-half, the Central Bank of Nigeria (CBN) has been implementing the financial inclusion and cashless economy initiative. Introduced in 2011, the policy aimed to reduce physical cash circulation, promote electronic transactions, and increase financial inclusion — by increasing adult Nigerians’ access to payment services.
From about 21 percent of adult Nigerians in 2010, the CBN’s financial inclusion efforts have raised the level to about 74 percent (legit.ng) as of mid-2025, and aims to achieve 95 percent by 2030. Apparently, this has become part of Nigeria’s broader vision to become a $1 trillion economy by 2030. In pursuit of this, the CBN has continued to focus on strengthening digital channels, deepening credit access, and supporting underserved groups, particularly women, youth, and the micro, small and medium-scale enterprises (MSMEs).
Ironically, however, the pivotal role of banks in the computation and extraction of taxes, duties and charges under Nigeria’s new tax laws (effective January 1, 2026) now seem to pose a threat to the pursuit of the lofty objectives of financial inclusion and cashless economy initiative. This is because under the new tax regime, it is believed (rightly or wrongly) that all monies that run through any bank account must attract one or several forms of taxes, duties or charges.
Specifically, there are transfer fees: ten naira for transactions below five thousand naira; N25 for transactions between five and fifty thousand naira; and N50 for transactions above fifty thousand naira. There is also stamp duty of N50 on electronic transfers above ten thousand naira. There is also value added tax: 7.5 percent on electronic banking service charges, such as POS charges, USSD sessions, and mobile transfers. To all these would be added a cybersecurity levy, which varies based on transaction amount; and then, the SMS notification fee — six naira per SMS for electronic transfer notification.
In the build-up to the implementation of the new tax laws, so many unprecedented developments took place, including the discovery of the existence of different versions of the laws. The globally renowned tax and management consulting firm, KPMG, “flagged several concerns with the tax laws, citing errors, inconsistencies, gaps, and omissions” that could affect businesses and taxpayers.
Although the federal government’s tax authority has ironed out the spotted flaws “behind closed doors” with the leadership of the consulting company, the Nigerian public remains in the dark about the details of the outcome. Till date relevant committees of the National Assembly are still investigating the varieties and extent of alterations in the tax laws. But a preliminary report by an adhoc committee has identified some of these discrepancies. Even as the federal government goes ahead with the implementation of the laws, some stakeholder-groups are still calling for their suspension.
The latest group — Catholic Bishops in Nigeria — have called for a delay in the implementation of the new tax laws “due to lack of public awareness, potential for increased hardship on the poor, and need for transparency, fairness, and visible government accountability.” Stressing that reforms must have a “human face” and not burden struggling citizens further amidst inflation and poverty, the clerics emphasized the need for better education on the reforms, stakeholder dialogue, and assurance that tax revenue will genuinely improve infrastructure and services, rather than fuel corruption.
In point of fact, owing to the uncertainty and confusion engendered by the alterations in the tax laws, the federal government was unable to issue the necessary guidelines for the implementation of the new tax laws. Taiwo Oyedele, chairman of the Presidential Tax Reform Committee disclosed this during the 2026 Economic Outlook event hosted by the Institute of Chartered Accountants of Nigeria (ICAN) in Lagos. Oyedele revealed that he had to instruct the Nigeria Revenue Service (NRS) and the Joint Revenue Board (JRB) to delay the implementation of the laws “until clarity is achieved.”
Oyedele told his audience about how his team attempted to purchase official printed copies (of the new tax laws) from the government printer but was told by staff that all copies had been taken by the National Assembly, “which restricted public access until their review is complete.” The National Assembly, however, is preparing its own gazette that has yet to be finalized.
But, bent on inaugurating the new tax regime, the federal government has kept muddling its way through, with or without the necessary guidelines, and adequate dose of public education and enlightenment. As a result of this, largely bereft of the true letters and spirit of the new tax laws, divergent strata of the Nigerian public have been reacting to the commencement of the laws in diverse ways.
Reports show that some businesses and traders have commenced arbitrarily increasing the prices of their goods and services in different parts of the country, attributing the hikes to the new tax laws. Apparently due to lack of clarity as to the real contents of the new laws, these businesses would rather opt to beat the laws, and rip off their patrons and customers.
A plank of this tendency is the insistence of some businesses and traders to deal only on “cash basis” — meaning that all payments for their goods and services must be made in cash. This, they do, to avoid any transactions showing in their bank accounts — which they believe — are being monitored by the banks for tax purposes. Right or wrong, this mindset is already gaining ground in several locations in the country.
Should this perception linger, electronic and digital payments — the pivots of the cashless economy — could be stalled: becoming a real counterpoise to financial inclusion and the cashless economy initiatives of the CBN. In the face of pervasive ignorance about details of the new tax laws, the banking public is getting scared stiff by fear of the unknown. If things are not clarified expeditiously, Nigeria could unwittingly return to a largely cash-based economy.
Marcel Okeke, a practising economist and consultant in Business Strategy & Sustainability based in Lagos, is a former Chief Economist at Zenith Bank Plc. He can be reached at: obioraokeke2000@yahoo.com; +2348033075697
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