Taxation: NRS clarifies no VAT on customers’ bank account transfers

*Dr. Zacch Adedeji, Executive Chairman of the Nigeria Revenue Service, clarifies that VAT on banking services is not a new legislation, urging consumers, and all financial stakeholders to disregard false reports in circulation but rely solely on official government channels for authoritative tax information

Isola Moses | ConsumerConnect

Contrary to recent widespread misinformation in the public space, the Nigeria Revenue Service (NRS) has made a formal clarification to correct the impression about the application of Value-Added Tax (VAT) on banking services in the economy.

Dr. Zacch Adedeji, Executive Chairman of NRS, made the clarification in a statement titled: “Nigeria Revenue Service (NRS) Clarifies VAT on Banking Services: ‘No New Taxes Introduced’ “.

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Dare Adekanmbi, Special Adviser to the Executive Chairman on Media, who issued the clarification noted Dr. Adedeji addressed such “misleading narratives”.

It is also noted that VAT on electronic bank transfers and banking fees is a new concept in the tax administration ecosystem in Nigeria.

The NRS equally stated that VAT has long been an integrated component of financial regulatory framework in the economy.

Adedeji stated that VAT is existing policy, and not fresh legislation.

According to him, VAT has always applied to the fees, commissions, and service charges rendered by banks and financial institutions in the West African country.

The Service said the Nigeria Tax Act (NTA), one of the four new tax acts President Bola Ahmed Tinubu signed into laws 2025, does not create any new tax obligations for consumers in this category.

What are taxed for VAT

The NRS, in the statement, explained VAT applies only to the service fees charged by banks, such as transfer fees, USSD charges, card issuance fees, and account maintenance fees.

However, the Service stated what is not taxed, reaffirming that the “actual money” being transferred by bank customers is not subject to VAT.

The statement further noted: “The Nigeria Revenue Service wishes to address and correct misleading narratives circulating in sections of the media.

“This claim is categorically incorrect. VAT has always applied to fees, commissions, and charges for services rendered by banks under Nigeria’s long established VAT regime.”

The Executive Chairman of NRS, therefore, urged the Nigerian the public, and all financial stakeholders to disregard false reports, and rely solely on official government channels for authoritative tax information.

Adedeji stated: “The Service remains committed to transparency and the accurate implementation of the Nigeria Tax Act to support national economic stability.”

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