Abuja, Jan. 16, 2026 – The Nigeria Revenue Service (NRS) has denied reports that the federal government is imposing new Value Added Tax (VAT) charges on banking services, electronic money transfers, fees and commissions.
It described the reports as incorrect and misleading and urged the public and stakeholders to disregard misinformation and rely on official communications for accurate and up-to-date tax information.
The NRS made the clarification on Thursday in a statement signed by Dare Adekanmbi, the Special Adviser on Media to the NRS Chairman, Zacch Adedeji.
It said the new Tax Act did not create any new VAT obligations for bank customers.
It said VAT had always applied to banking services under Nigeria’s existing tax regime and was not introduced by the new Nigeria Tax Act.
“The Nigeria Tax Act did not introduce VAT on banking charges, nor did it impose any new tax obligation on customers in this regard.
“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 statement said.
The NRS stressed that fees, commissions and charges for services rendered by banks and other financial institutions had long been subject to VAT under established tax laws, contrary to claims circulating in sections of the media.
“VAT is not charged on the amount of money transferred or withdrawn. It applies only to the service charge or commission imposed by the bank.
“For example, if a bank charges ₦10 for a transfer, VAT of 7.5 per cent, which is ₦0.75, applies to that ₦10 charge, not to the amount being transferred,” it explained.
The NRS also said interest earned on savings accounts, fixed deposits, and similar bank deposits is not subject to VAT.
