The Nigeria Revenue Service (NRS) has moved to quell public concern over electronic banking charges, clarifying that Value Added Tax (VAT) has not been newly introduced on electronic transfers or banking transactions, contrary to claims circulating in sections of the media.
In a statement seen by Technology Times, the tax authority describes the reports as misleading, stressing that VAT has long applied to service-related fees charged by banks and other financial institutions, including those associated with electronic transactions.
“The Nigeria Revenue Service (NRS),” the agency says, “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.”
According to the NRS, Nigeria’s existing VAT framework already covers fees, commissions, and charges for services rendered within the financial system, and the current development does not create any new tax obligation for customers.
NRS: Nigeria Tax Act didn’t introduce VAT on banking charges
According to the NRS, Nigeria’s existing VAT framework already covers fees, commissions, and charges for services rendered within the financial system, and the current development does not create any new tax obligation for customers.
“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 Nigeria Tax Act did not introduce VAT on banking charges, nor did it impose any new tax obligation on customers in this regard,” the Service says.
The clarification is following customer notifications issued by financial institutions, including Moniepoint Microfinance Bank, which recently informed customers about how VAT would be applied and displayed on certain banking services.
In a message sent to customers on January 14, 2026, Moniepoint says, “We would like to inform you of an upcoming government-endorsed regulatory change regarding Value Added Tax (VAT).”
The bank explains that from Monday, January 19, 2026, it is required to collect a 7.5% VAT and remit it to the Nigeria Revenue Service, formerly known as the Federal Inland Revenue Service.
According to Moniepoint, the VAT applies to specific service fees, including electronic banking charges such as point-of-sale (POS) transaction fees, mobile banking transfer fees, USSD transaction fees, POS activation fees, card issuance fees, and Moniebook subscription charges. It also applies to other service fees, such as loan processing and documentation charges.
The bank clarifies that interest-related services remain exempt. “Services that do not attract VAT include interest on loans and advances, and interest on deposits and savings,” the notice says.
Moniepoint further emphasises that the VAT charge does not represent a price increase by the institution. “This is not a price increase by Moniepoint,” the message says, adding that the bank is “required to collect and remit VAT to the Nigeria Revenue Service (NRS).”
It also notes that the NRS has communicated a deadline of January 19, 2026 for all financial institutions as well as commercial banks, microfinance banks, and electronic money transfer operators, to begin collecting and remitting VAT on applicable service fees. Customers are informed that the VAT charge will appear separately on transaction reports and statements.
Reiterating its position, the NRS is urging the public to rely on verified and official sources for tax-related information.
“The Nigeria Revenue Service urges members of the public and all stakeholders to disregard misinformation and to rely exclusively on official communications for accurate, authoritative, and up-to-date tax information,” the agency says.
NRS says its clarification is aimed at calming public anxiety around electronic transfers and reinforcing that the current situation reflects enforcement and transparency within Nigeria’s existing VAT system, rather than the introduction of a new tax regime on electronic banking.
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