No new taxes on transfers, VAT credits allowed – Taiwo Oyedele

Banks and other financial institutions in Nigeria have been assured that the recently enacted tax reforms do not introduce any new taxes or levies on electronic transfers or money in bank accounts, Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has stated.

The clarification came during a multi-stakeholder engagement session involving the Nigeria Revenue Service (NIRS), Joint Revenue Board, Central Bank of Nigeria (CBN), and the Presidential Fiscal Policy & Tax Reforms Committee, aimed at guiding the smooth implementation of the new tax laws.

According to Oyedele, under the new framework, many businesses are now eligible to claim input VAT credits on bank charges, a provision designed to reduce operational costs and improve compliance.

The session brought together representatives from fintechs, commercial banks, microfinance banks, pension funds, asset managers, and investment and securities firms, including Risk and Compliance Officers, Legal Advisers, Chief Financial Officers, and Regulatory Affairs Executives.

During the engagement, key issues discussed included ensuring that customers are not wrongly charged, clarifying the Tax Identification Number (TIN) requirement for business or income accounts which has been in effect since January 13, 2020, and providing guidance to customers on filing tax returns and claiming deductions.

Oyedele revealed the session also addressed the repeal of Tax Clearance Certificates (TCC) as a requirement for foreign exchange transactions to ease doing business, clarified the due process for substitution powers exercised by tax authorities, and highlighted additional taxpayer protections under the Office of the Tax Ombud.

Oyedele emphasized that the reforms are designed to promote formalisation, tax harmonisation, and financial inclusion, while strengthening trust and efficiency across Nigeria’s financial system.