The Nigeria Revenue Service (NRS) has dismissed reports claiming that a new 7.5 per cent Value Added Tax (VAT) has been introduced on banking services, describing such claims as false and misleading.
In a statement posted on its official X account on Thursday, the NRS addressed growing public concerns following reports that some Nigerian banks, including Moniepoint, had begun applying VAT to services such as transfers and Unstructured Supplementary Service Data (USSD) transactions from January 19, 2026.
The agency clarified that VAT on banking services is not a recent development and has no connection to any new or amended tax legislation. According to the NRS, VAT has always been applicable to fees, commissions, and charges associated with banking services provided by financial institutions across Nigeria.
“The Nigeria Revenue Service (NRS) wishes to address and correct misleading narratives circulating in sections of the media suggesting that Value Added Tax (VAT) has been newly introduced on banking services, fees, commissions, or electronic money transfers. This claim is categorically incorrect,” the statement said.
The NRS further explained that Nigeria’s existing tax framework already provides for VAT on applicable banking charges, stressing that the Nigeria Tax Act did not impose any new VAT obligations on bank customers.
The agency urged the public to disregard reports suggesting the introduction of a fresh VAT on banking transactions, reaffirming that the current VAT regime remains unchanged.
Comments