FCT, Nigeria – The Nigeria Revenue Service (NRS) has debunked the imposition of Value-Added Tax (VAT) on banking services – including electronic money transfer, fees and commission.
Dispelling the misinformation doing the rounds across several media platforms, he described the reports as incorrect and misleading.
In a statement made available to newsmen on Thursday by Dare Adekanmbi, Special Adviser on Media to the Nigeria Revenue Service (NRS) Chairman, Zacch Adedeji, NRS said VAT has always applied to banking services and is not newly introduced under the new tax law, the Nigeria Tax Act.
The statement clarified that “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 Nigeria Revenue Service (NRS) wishes to address and correct misleading narratives circulating in sections of the media suggesting that Value Added Tax (VAT) has been newly introduced on banking services, fees, commissions, or electronic money transfers. This claim is categorically incorrect.
“VAT has always applied to fees, commissions, and charges for services rendered by banks and other financial institutions under Nigeria’s long-established VAT regime. The Nigeria Tax Act did not introduce VAT on banking charges, nor did it impose any new tax obligation on customers in this regard.
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“The Nigeria Revenue Service urges members of the public and all stakeholders to disregard misinformation and to rely exclusively on official communications for accurate, authoritative, and up-to-date tax information”.
The statement also included a list of Frequently Asked Questions (FAQs) on VAT as it relates to the tax law in order to provide further clarity on other areas of concern to Nigerians.
Also in the statement is a detailed FAQ to dispel widespread misconceptions about Value Added Tax (VAT) under the Nigeria Tax Act, 2025, emphasising that recent changes target enforcement, not new taxes on everyday Nigerians.
Adekanmbi clarified key points stating that VAT applies only to service charges like bank transfer fees (e.g., 7.5% on a N10 fee, not the transfer amount itself), USSD charges, card issuance, and account maintenance fees—obligations long embedded in Nigerian VAT law.
Interest on savings accounts and fixed deposits remains exempt, as it does not qualify as a supply of goods or services.
Essential items face no VAT burden such that basic food, medical and pharmaceutical products, and core educational services from recognised institutions are explicitly exempted to safeguard consumers, healthcare access, and living costs.
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