The Nigeria Revenue Service (NRS) has clarified that Value-Added Tax (VAT) on banking services, including electronic transfers, fees, and commissions, is not a new levy, contrary to circulating reports.
In a statement on Thursday, Dare Adekanmbi, Special Adviser on Media to the NRS Chairman Zacch Adedeji, emphasized that VAT has always applied to charges for services rendered by banks and other financial institutions under Nigeria’s existing tax regime.
“The Nigeria Tax Act did not introduce VAT on banking charges, nor did it impose any new tax obligation on customers,” the statement said, urging the public to disregard misinformation and rely on official communications for accurate guidance.
The NRS also released a Frequently Asked Questions (FAQ) document to clear misconceptions, noting that VAT applies only to service-related charges such as bank transfer fees, USSD codes, card issuance, and account maintenance—not the principal amounts transferred or interest earned on deposits.
Essential items including basic food, medical and pharmaceutical products, and core educational services remain exempt, ensuring no added burden on everyday Nigerians.
Adekanmbi stressed, “What changed is compliance and enforcement, not the law. Banks are now required to remit VAT already collected, reinforcing accountability without introducing new taxes.”
The clarification comes amid widespread confusion that had raised fears among consumers over hidden bank levies, a concern NRS says is entirely unfounded.
