No hiidden charges on bank customers -Nigeria Revenue Service
By Queen Abayomi – Abuja
The Nigeria Revenue Service (NRS) has dismissed reports suggesting that Value Added Tax (VAT) has been newly introduced on banking services, describing such claims as misleading and inaccurate.
A statement signed by the Special Adviser on Media to the NRS Chairman, Dare Adekanmbi, on behalf of the Executive Chairman, Dr. Zacch Adedeji, explained that VAT has always applied to fees, commissions and charges on banking services, and that the Nigeria Tax Act did not introduce any new VAT obligation on customers.
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The statement, noted that the misinformation circulating in some sections of the media has created unnecessary confusion among Nigerians.
According to the NRS, VAT has long been applicable to banking services such as electronic transfers, USSD charges, card issuance fees, account maintenance fees and other service-related charges, where a fee or commission is involved.
“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.
The Service clarified that VAT is not charged on the actual amount of money transferred or withdrawn by customers, but only on the service charge imposed by banks.
“VAT is not charged on the amount of money transferred or withdrawn.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% (₦0.75) applies to that ₦10 charge—not to the amount being transferred”
The NRS further explained that interest earned on savings accounts, fixed deposits and similar bank deposits is not subject to VAT, as interest income does not qualify as a supply of goods or services under the Nigeria Tax Act, 2025.
In addition, the Service reaffirmed that basic food items, essential goods, medical and pharmaceutical products, as well as educational services provided by recognised institutions, remain exempt from VAT under the Act.
Addressing public concerns, the NRS stated that what has changed is not the law itself but the level of compliance and enforcement, as financial institutions are being reminded of their obligation to remit VAT already charged and collected from customers.
The Nigeria Revenue Service urged members of the public to disregard false narratives and rely only on official communications for accurate and up-to-date information on tax matters, assuring Nigerians that the Nigeria Tax Act did not introduce any new VAT burden on ordinary citizens.
(DEMOCRACY NEWSLINE NEWSPAPER, JANUARY 16TH 2026)
