The Nigeria Revenue Service (NRS) has clarified that no new Value‑Added Tax (VAT) has been added to bank customer transactions, saying recent reports suggesting otherwise are wrong and misleading, tax officials say.

In a statement signed by Dare Adekanmbi, Special Adviser on Media to the NRS Chairman Zacch Adedeji, the revenue service said VAT on banking services, fees, and commissions has always existed under Nigeria’s tax laws and was not introduced by the Nigeria Tax Act 2025.

“The Nigeria Tax Act did not introduce VAT on banking charges, nor did it impose any new tax obligation on customers in this regard,” the NRS said, dismissing claims that the tax was newly applied to bank transfers or mobile money transactions.

According to the NRS, VAT continues to apply only to fees and service charges that banks and other financial firms collect from customers — including transfer fees, account maintenance fees, USSD charges, and card issuance fees — and not to the actual amounts transferred or withdrawn.

For example, if a bank charges ₦100 as a transfer fee, VAT of 7.5 per cent (₦7.50) applies only to that service fee and not to the total money being sent, the NRS explained.

The agency also said that interest on savings accounts, fixed deposits, and similar earnings are exempt from VAT, because interest income is not considered a supply of goods or services under the tax law.

The NRS urged Nigerians to rely on official communications for accurate tax information and to disregard unfounded reports circulating in some media outlets. It noted that the recent attention on VAT reflects enforcement and compliance efforts, not the creation of new tax charges on everyday customers.

This clarification follows broader moves by regulators and banks to remind customers that VAT on banking fees has long been part of Nigeria’s tax system, even as the government standardises collection and remittance practices under the updated tax framework.