The Nigeria Revenue Service (NRS) has dismissed reports suggesting that the Nigeria Tax Act recently introduced Value Added Tax (VAT) on banking fees, describing such claims as misleading and inaccurate. The Service clarified that VAT on applicable banking services has long been part of Nigeria’s tax framework.
The statement follows narratives circulated in some media outlets claiming that the Nigeria Tax Act newly imposed VAT on banking services, electronic transfers, and related charges. The NRS categorically denied these assertions, noting that they do not reflect the provisions of the law.
In a statement issued on Wednesday, the NRS emphasised that the Nigeria Tax Act neither imposed new taxes on banking transactions nor altered existing VAT obligations.
It noted that Fees, commissions, and service charges levied by banks and other financial institutions have, under Nigeria’s long-standing tax regime, always been subject to VAT.
The Service urged Nigerians to consult verified information from official government channels on tax matters, reaffirming its commitment to transparency, accuracy, and effective public communication in administering the country’s tax laws.
The statement read partly, “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.”
