Nigeria’s tax agency has moved swiftly to clarify a growing public concern, stating that a Value Added Tax (VAT) on bank service charges is not a new policy.
The Nigeria Revenue Service (NRS) issued the clarification following reports that financial institutions, including Moniepoint, were set to begin applying a 7.5% VAT on services like electronic transfers and USSD transactions from January 19, 2026.
In a statement, the NRS labeled these reports as “misleading” and “categorically incorrect.” The agency emphasized that VAT has always been applicable to the fees, commissions, and charges levied by banks and other financial institutions, as part of Nigeria’s longstanding tax laws.
“The Nigeria Revenue Service (NRS) wishes to address and correct misleading narratives… suggesting that Value Added Tax (VAT) has been newly introduced on banking services… This claim is categorically incorrect,” the statement read.
The service further clarified that recent tax legislation did not create any new VAT obligations for bank customers, insisting the application of the tax on service charges is an existing standard practice.