The Nigeria Revenue Service (NRS) has dismissed reports suggesting that Value-Added Tax (VAT) has been newly imposed on banking services, electronic transfers, and related charges, describing such claims as inaccurate and misleading.
In a statement issued in Abuja, the Special Adviser on Media to the Executive Chairman of the NRS, Mr. Dare Adekanmbi, said there has been no policy shift introducing new VAT obligations on bank customers under the recently enacted Nigeria Tax Act.
Adekanmbi explained that VAT has long applied to certain banking service charges under Nigeria’s existing tax framework and was not newly introduced by the current tax reforms.
“The Nigeria Revenue Service wishes to correct misleading narratives circulating in parts of the media suggesting that VAT has been newly introduced on banking services, fees, commissions, or electronic money transfers. This claim is entirely incorrect,” he stated.
According to him, the Nigeria Tax Act did not create or expand VAT obligations on banking services, stressing that the law merely reinforces existing provisions already captured under the long-standing VAT regime.
He noted that VAT has always applied to service-related charges imposed by banks and other financial institutions, including fees and commissions, and that this position remains unchanged.
“The Nigeria Tax Act did not introduce VAT on banking charges, nor did it impose any new tax burden on customers in this regard,” Adekanmbi said.
He urged the public, businesses, and stakeholders to disregard misinformation and rely on official communications from the NRS for accurate and authoritative tax guidance.
To address widespread concerns, the statement included a detailed set of Frequently Asked Questions (FAQs) clarifying how VAT applies under the current tax framework.
Adekanmbi explained that VAT is applicable only to service charges such as transfer fees, USSD charges, card issuance fees, account maintenance fees, and similar banking-related commissions.
He emphasized that VAT does not apply to the actual amount of money transferred or withdrawn by customers.
“For instance, if a bank charges ₦10 as a transfer fee, VAT of 7.5 percent—amounting to ₦0.75—applies strictly to that service charge, not the value of the funds being transferred,” he explained.
He further clarified that interest earned on savings accounts, fixed deposits, and similar instruments remains exempt from VAT. According to him, interest income does not qualify as a supply of goods or services and therefore falls outside the scope of VAT under the Nigeria Tax Act, 2025.
Adekanmbi also reiterated that essential items and services remain VAT-exempt to protect consumers and ease cost-of-living pressures. These include basic food items, essential medical services, pharmaceutical products, and core educational services offered by recognised institutions.
“These exemptions are clearly outlined under the VAT exemption provisions of the Act and are consistent with longstanding government policy,” he said.
He concluded by stressing that what has changed under the new tax regime is enforcement and compliance, not the substance of the law.
“Financial institutions are being reminded of their obligation to remit VAT already charged and collected from customers. The Act did not introduce VAT on savings, food, healthcare, education, or other essential consumption. Claims suggesting otherwise are misleading,” Adekanmbi stated.
 has dismissed reports suggesting that Value-Added Tax (VAT) has been newly imposed on banking services, electronic transfers, and related charges, describing such claims as inaccurate and misleading.){kind=link}