The Nigeria Revenue Service (NRS) has moved to calm public concerns over reports suggesting that Value-Added Tax (VAT) has been newly imposed on banking services, insisting that no new tax has been introduced on electronic transfers, fees or commissions.
In a statement released on Thursday, the revenue agency said VAT has long been applicable to certain banking services and was not created by the recently enacted Nigeria Tax Act.
According to the NRS, claims circulating in sections of the media that customers are being subjected to fresh VAT charges are misleading.
The statement, signed by Dare Adekanmbi, Special Adviser on Media to NRS Chairman, Zacch Adedeji, clarified that the Nigeria Tax Act did not introduce VAT on banking charges nor impose additional tax burdens on bank customers.
“The Nigeria Tax Act did not introduce VAT on banking services, fees, commissions or electronic money transfers,” the agency stated. “VAT has always applied to these services under Nigeria’s existing tax framework.”
The NRS explained that VAT is charged strictly on service fees collected by financial institutions and not on the actual funds being transferred or withdrawn.
Using a practical illustration, the agency noted that if a bank charges ₦10 for a transfer, VAT of 7.5 per cent applies only to that ₦10 fee and not to the total amount being sent.
It further clarified that interest earned on savings accounts, fixed deposits and similar financial products remains exempt from VAT, as such income does not qualify as a taxable supply under the Nigeria Tax Act, 2025.
Reiterating consumer protections, the agency said essential items and services — including basic foodstuffs, medical and pharmaceutical services, and tuition fees — continue to enjoy VAT exemption in line with longstanding government policy.
According to the NRS, the current public debate stems from renewed enforcement efforts rather than changes to the law. “What has changed is compliance and enforcement, not the law,” the statement said, adding that financial institutions are being reminded of their obligation to remit VAT already charged to customers.
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The clarification followed a notification issued on Wednesday by digital bank Moniepoint, which informed customers of plans to implement VAT collection on certain electronic banking charges from January 19, 2026.
The notice cited a directive from tax authorities mandating banks and fintech firms to begin VAT collection and remittance.
Moniepoint disclosed that the VAT would apply to specific services such as electronic transfers, USSD transaction fees and card issuance charges, while stressing that interest on deposits and savings would remain exempt.
The NRS urged Nigerians to rely on official channels for accurate tax information, warning that reports suggesting the introduction of new VAT charges on banking services are incorrect and capable of causing unnecessary public anxiety.