New Tax Law
A recent News Agency of Nigeria (NAN) report reveals that many traders and business owners across Nigeria are increasingly opting for cash payments instead of bank transfers following the implementation of the new tax law. The move, especially noted in major commercial hubs like Mararaba and Nyanya in the Federal Capital Territory, reflects widespread uncertainty about tax obligations on digital transactions.
Business owners cited concerns that electronic transfers could attract additional taxes or charges, prompting them to rely more on cash to avoid unexpected deductions. Despite assurances from the Central Bank of Nigeria (CBN) and tax authorities that legitimate bank accounts will not be arbitrarily debited, many traders remain cautious.
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Customers have also expressed frustration, reporting instances of extra fees being demanded by sellers after bank transfers. Analysts warn that this shift back to cash may undermine financial inclusion, slow the cashless economy initiative, and push more transactions into the informal sector, which is harder to regulate and tax.
Economists emphasize the importance of public education on the new tax framework, which requires linking Tax Identification Numbers (TINs) to bank accounts and reporting high-turnover accounts, but does not permit arbitrary deductions from personal or business accounts.
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