By SUNTV Global Channel | January 15, 2026
The Nigeria Revenue Service (NRS) has moved to calm public concerns, insisting that no new Value-Added Tax (VAT) has been introduced on banking services, electronic transfers, or related charges.
In a statement released on Thursday, the agency clarified that VAT has always applied to certain banking service charges under Nigeria’s existing tax framework and was not newly imposed by the recently enacted Nigeria Tax Act.
The clarification, signed by Dare Adekanmbi, Special Adviser on Media to NRS Chairman Zacch Adedeji, stated that the new tax law did not introduce VAT on bank charges nor create any additional tax burden for account holders.
“The Nigeria Tax Act did not introduce VAT on banking charges, nor did it impose any new tax obligation on customers in this regard,” the statement read.
According to the NRS, the agency was responding to misleading reports suggesting that VAT had been newly imposed on banking services, fees, commissions and electronic money transfers.
“This claim is categorically incorrect,” the agency said, stressing that fees, commissions and service charges imposed by banks have long been subject to VAT under Nigeria’s VAT regime.
The revenue agency further explained that VAT is applied only to the service charge itself, not the amount of money being transferred or withdrawn.
“For instance, if a bank charges ₦10 for a transfer, VAT of 7.5%—which amounts to ₦0.75—applies only to that ₦10 charge, not to the total sum being transferred,” the NRS explained.
The agency also reassured Nigerians that interest earned on savings accounts, fixed deposits and similar investments remains VAT-exempt, as such income does not qualify as the supply of goods or services under the Nigeria Tax Act, 2025.
In addition, the NRS reaffirmed that basic food items, essential goods, medical services, pharmaceutical products and tuition fees continue to enjoy VAT exemption, in line with long-standing policies aimed at protecting consumers and ensuring access to healthcare and education.
Addressing recent enforcement actions, the agency noted that what has changed is compliance, not the law.
“Financial institutions are being reminded of their existing obligation to remit VAT already charged and collected from customers, in accordance with the Nigeria Tax Act,” the statement added.
The clarification follows a notice sent to customers on Wednesday by fintech firm Moniepoint, informing users of the planned implementation of VAT on certain electronic banking charges.
In the notice, Moniepoint said the move was based on a directive from tax authorities requiring financial institutions to commence VAT collection and remittance.
“From Monday, January 19, 2026, we are required to collect a 7.5% VAT to be remitted to the Nigeria Revenue Service (NRS),” the notice stated.
The company explained that the VAT would apply to specific banking services, including mobile transfer fees, USSD transaction charges and card issuance fees, while emphasizing that interest on deposits and savings does not attract VAT.
The NRS urged Nigerians to rely on official statements and verified sources for tax information, warning that false narratives could cause unnecessary panic.
— SUNTV Global Channel
