Traders shun bank transfers amid uncertainty over new tax law

Some traders and business owners have begun rejecting bank transfers in favour of cash payments following the implementation of the new tax law.

In Abuja it showed that the shift is largely driven by confusion over the law’s provisions and fears of additional charges on electronic transactions.

Traders said the move was a temporary strategy to keep their businesses afloat and avoid what they described as unclear or excessive deductions.

Customers, however, expressed concern that the trend undermines the Central Bank of Nigeria’s (CBN) financial inclusion and cashless policy initiatives.

Mr Fidelis Agbo, a trader at the Building Materials Market in Mararaba, said uncertainty surrounding the new tax law informed his decision to stop accepting transfers.

“I am confused about the provisions of the tax law. What we hear in the market is that the government will collect tax on every money that enters your account,” Agbo said.

According to him, he now collects cash payments and directs customers to nearby Point of Sale (PoS) operators to withdraw money.

“For my big customers, we share the PoS charges so the burden will not be too much on them. I will continue like this until I understand the tax system better,” he added.

Similarly, Mr Khalid Abbas, a trader at Nyanya Market, described the tax law as complex and said many marketers were worried about its implications for electronic transactions.

“I prefer cash because I don’t want to be taxed unfairly. Cash is straightforward—no banks, no digital records, no complications,” Abbas said.

He noted that conflicting information about whether transaction narrations could exempt transfers from taxation had further increased uncertainty.

“As a business owner, I am concerned about how this law will affect me.

“To avoid problems, I prefer to collect cash for now,” he said.

A buyer, Mrs Sarah Onifade, recounted an unpleasant experience after purchasing goods worth over N830,000 via bank transfer at Nyanya Market.

“The seller received the alert but asked me to pay N50,000 as tax, claiming he would be charged by both the bank and the government,” she said.

Onifade said she eventually paid an additional N20,000 after prolonged arguments, describing the experience as frustrating and discouraging.

Another business owner, Mrs Sarah Akator, called on relevant agencies to urgently educate the public on the new tax law.

She urged the National Orientation Agency (NOA) and tax authorities to intensify sensitisation campaigns, particularly in markets and local communities.

Akator also recommended translating the law into local languages to enhance understanding and compliance among citizens.