The Nigeria Revenue Service (NRS) has insisted that the Value Added Tax (VAT) charged on banking services is not a new development, dismissing claims that financial institutions have only recently begun applying the tax.
In a statement posted on its official X account on Thursday, the agency addressed reports that some Nigerian banks, including Moniepoint, started charging a 7.5 per cent VAT on services such as bank transfers and Unstructured Supplementary Service Data (USSD) transactions from January 19, 2026.
The NRS explained that VAT has always been applicable to fees, commissions and other charges related to banking services under Nigeria’s existing tax framework.
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According to the agency, suggestions that a new VAT had been introduced for banking transactions are misleading.
“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 read.
It added that the Nigeria Tax Act did not impose any new VAT obligations on bank customers, stressing that current charges remain in line with long-standing tax provisions.