Bamboo has notified users that interest earned on selected naira-denominated investment products on its platform will now attract a 10 percent withholding tax (WHT), in line with existing guidelines issued by the Federal Inland Revenue Service (FIRS).
According to the notice, the tax applies to interest earned on Treasury Bills, Fixed Returns, and Naira Savings products available on the Bamboo platform.
Automatic Tax Deduction at Maturity
Bamboo disclosed that the 10 percent withholding tax will be automatically deducted once an affected investment matures or is liquidated, requiring no additional action from users.
The company stated that the update reflects regulatory compliance with FIRS rules governing the taxation of interest income from short-term investment securities in Nigeria.
Regulatory Context
Under Nigeria’s tax framework, interest earned on certain fixed-income instruments, including treasury securities and savings products, is subject to withholding tax at source. Financial institutions and investment platforms are required to deduct and remit the tax to FIRS on behalf of investors.
The latest adjustment aligns Bamboo’s treatment of these products with industry-wide practices already applied by banks, asset managers, and other investment service providers.
Implications for Investors
While the deduction does not alter the headline interest rates advertised on the affected products, it reduces net returns received by investors at maturity. Market participants typically factor withholding tax into yield expectations when comparing fixed-income investment options.
Bamboo advised customers seeking clarification on the tax treatment to contact its customer support team directly.
Broader Market Impact
The move highlights increasing regulatory enforcement around tax compliance across Nigeria’s fast-growing digital investment and fintech ecosystem, as authorities seek to improve revenue collection and ensure uniform application of tax rules across traditional and digital financial platforms.
Bamboo is a digital investment platform that allows individuals to buy, sell, and manage financial assets directly from their mobile device or web browser.
