The Nigeria Revenue Service (NRS) has dismissed reports suggesting that Value-Added Tax (VAT) has been newly imposed on banking services, including electronic transfers, fees and commissions. In a statement signed by Dare Adekanmbi, Special Adviser on Media to the NRS chairman, Zacch Adedeji, the agency described the claims as misleading, stressing that VAT has always applied to banking services under Nigeria’s existing tax regime and was not introduced by the Nigeria Tax Act.
According to the NRS, “The Nigeria Tax Act did not introduce VAT on banking charges, nor did it impose any new tax obligation on customers in this regard,” adding that VAT applies only to fees and commissions charged by banks for services such as transfers, USSD usage, card issuance and account maintenance, and not on the actual amount transferred or withdrawn. The Service urged Nigerians to ignore misinformation and rely on official communication, noting that interest on savings and fixed deposits, as well as basic food items, healthcare, education and essential goods, remain VAT-exempt, while recent concerns stem from improved compliance and enforcement rather than the introduction of new taxes.