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The Nigeria Revenue Service (NRS) has issued a clarification to address public concerns around Value-Added Tax (VAT) on banking transactions, stressing that no new VAT has been introduced on banking services under the Nigeria Tax Act.
In a statement released on Tuesday, the NRS explained that VAT has long applied to banking services and related charges, in line with Nigeria’s existing tax and regulatory framework. The agency emphasised that the new tax legislation did not create additional tax obligations for bank customers.
The clarification, signed by Dare Adekanmbi, Special Adviser on Media to the NRS Chairman, Zacch Adedeji, noted that recent reports suggesting a fresh VAT charge on banking services were misleading.
“The Nigeria Tax Act did not introduce VAT on banking charges, nor did it impose any new tax obligation on customers in this regard,” the statement said.
According to the NRS, VAT has consistently applied to fees, commissions, and charges for services rendered by banks and other financial institutions under Nigeria’s established VAT regime. These include transaction-related service charges such as transfer fees, USSD charges, card issuance fees, account maintenance fees, and similar banking services.
The Service further stressed that this position reflects long-standing regulatory policy and is not a recent development tied to the implementation of the Nigeria Tax Act.
In urging calm, the NRS called on the public, financial institutions, and other stakeholders to rely on official communications for accurate and up-to-date information, warning against the spread of misinformation that could undermine confidence in the financial system.
The clarification reinforces the importance of transparency and regulatory compliance in Nigeria’s financial services sector, particularly as tax and payment systems continue to evolve alongside digital banking and electronic money transfers.
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