The Nigeria Revenue Service (NRS) has dismissed widespread claims that a new Value Added Tax (VAT) has been introduced on banking transactions, describing the reports as misleading and inaccurate.
In a statement issued on January 15, 2026, the tax authority said VAT on banking fees, commissions and electronic money transfer charges has always existed under Nigeria’s VAT framework, stressing that the recently enacted Nigeria Tax Act did not impose any new tax burden on bank customers.
The NRS said it was responding to growing public concern and online reports suggesting that the government had begun taxing bank transfers and service charges for the first time.
“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 agency said.
“The Nigeria Tax Act did not introduce VAT on banking charges, nor did it impose any new tax obligation on customers in this regard.”
Okay News reports that the clarification follows recent notifications sent by several banks and fintech companies to customers, informing them that VAT will be applied to certain banking services, such as electronic transfers, card issuance, and USSD charges, from January 19, 2026.
This led many Nigerians to believe that a fresh tax had been introduced.
However, the NRS explained that what is happening is not a new tax, but stricter compliance and uniform implementation of existing VAT laws across all financial institutions, including commercial banks, microfinance banks and electronic money transfer operators.
Under Nigeria’s VAT framework, interest earned on deposits and savings remains exempt, but service-related charges attract VAT, which is collected by banks and remitted to the government.
The revenue agency urged Nigerians to rely only on official government channels for accurate tax information and to disregard misinformation circulating on social media.
“The Nigeria Revenue Service urges members of the public and all stakeholders to disregard misinformation and rely exclusively on official communications for accurate, authoritative, and up-to-date tax information,” the statement said.
