By Erewunmi Peace

A recent survey conducted by the News Agency of Nigeria (NAN) shows that many traders and business owners are increasingly rejecting bank transfers and preferring cash payments following the implementation of the new tax law.

The preference for cash, according to traders, stems from confusion and concerns over additional charges associated with electronic money transfers.

Under the new tax law, a ₦50 stamp duty is applied to transfers of ₦10,000 or more, leading some market operators to believe that paying or receiving funds electronically could result in extra costs.

Speaking to NAN, several traders noted that cash transactions are more straightforward, faster, and avoid perceived taxation on digital transfers, especially for small businesses that rely on daily liquidity.

Government officials, however, have clarified that the new tax provisions are not intended to penalize ordinary transactions, and no automatic deductions will be made from bank accounts.

Authorities are urging traders and business owners to understand the new rules and continue to use digital payment methods where possible, as cash-only transactions may pose security risks.

Economic analysts say that while cash remains popular in markets, educating traders about electronic payments and the tax law is crucial to encourage compliance and reduce fear-driven practices.