AWC Economy Desk
The Nigeria Revenue Service (NRS) has moved to dispel widespread public concerns and media reports suggesting that Value Added Tax (VAT) has been newly introduced on banking services, fees, commissions and electronic money transfers, describing such claims as misleading and incorrect.
In a clarification issued on 16 January 2025 and made available to AWC, the NRS stated that VAT has always applied to fees, commissions and charges for services rendered by banks and other financial institutions under Nigeria’s existing VAT framework. According to the Service, the current Nigeria Tax Act did not introduce VAT on banking charges, nor did it impose any new tax burden on bank customers.
The NRS explained that routine charges such as account maintenance fees, transfer charges and other service-related commissions have long been subject to VAT, and that recent interpretations suggesting a fresh imposition are based on misinformation rather than changes in the law.
Reassuring Nigerians, the revenue authority stressed that there has been no policy shift or new directive targeting banking transactions, and urged customers not to panic or assume additional deductions beyond what has historically applied.
The Service advised the public, financial institutions and other stakeholders to ignore unverified reports and to rely strictly on official communications from the NRS for accurate, authoritative and up-to-date tax information.
The clarification comes amid heightened public scrutiny of tax reforms and financial charges, with the NRS reiterating its commitment to transparency, public education and fair tax administration.
