NRS dismisses claim on 7.5% VAT on banking services

By Ayorinde Oluokun/Abuja

The Nigeria Revenue Service (NRS) has dismissed insinuations tha Value Added Tax (VAT) on banking services, fees, commissions, or electronic money transfers is one of the new taxes introduced under the Nigeria Tax Act that came into effect on 1 January, 2026.

NRS said this in response to some publications in the media indicating that bank customers will be charged 7.5 percent VAT on some banking services including electronic money transfers.

Some banks and fintech companies had informed their customers that they have been directed by the NRS to start collecting and remitting 7.5 per cent value-added tax on certain ic banking services effective Monday, January 19, 2026.

The platforms said the VAT will apply to electronic banking charges, including mobile money transfers, USSD transaction fees, and card issuance fees.

Moniepoint, one of the leading Nigerian fintechs had in an e-mail on Wednesday informed its customers of the development.

“From Monday, January 19, 2026, we are required to collect a 7.5 per cent VAT, to be remitted to the Nigerian Revenue Service (formerly known as the Federal Inland Revenue Service).

“VAT will apply to certain banking services that include electronic banking charges such as mobile banking fees (transfers), USSD transaction fees, and card issuance fees,” the email read.

The company said services that will remain exempt include interest earned on deposits and savings, meaning customers will not pay tax on the returns from their accounts.

However, it was later clarified that the 7.5 per cent VAT will be applied to that service fee, not the money being sent, contrary to claims in the social media.

However, further clarifying the issue, NRS in a statement said the VAT payment on the specified banking services are not new and was not one of the new taxes introduced under the new tax act

“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,” NRS said.

It described the claim media suggesting that Value Added Tax (VAT) has been newly introduced on banking services, fees, commissions, or electronic money transfers as misleading and categorically incorrect.

“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 Service said