The Nigeria Revenue Service, NRS, has clarified that the Value Added Tax, VAT, applied to banking services is not a new development and has no connection to any recent tax legislation.
In a statement posted on its official X account on Thursday, the NRS addressed reports suggesting that Nigerian banks, including Moniepoint, had begun introducing a 7.5 percent VAT on banking services such as transfers and Unstructured Supplementary Service Data (USSD) transactions from January 19, 2026.
According to the agency, VAT has long been applicable to fees, commissions, and charges associated with banking services provided by financial institutions across the country.
The NRS stressed that claims of a newly introduced VAT on banking services are misleading and incorrect.
“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 further explained that VAT has always applied to banking service charges under Nigeria’s established tax framework, adding that the Nigeria Tax Act did not introduce any new VAT obligations on bank customers.
Eze Chidiebere Paul
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