ABUJA, Nigeria (VOICE OF NAIJA)- The Federal Government clarified on Thursday that value-added tax on banking services is not a new policy, following reports suggesting that the levy had only recently been imposed on electronic money transfers and other banking transactions.
The clarification came amid complaints from bank customers who believed new charges had been introduced on routine services at a time when inflation and rising living costs are placing pressure on households.
In a statement, the Nigeria Revenue Service explained that existing tax laws already mandate banks to charge and remit VAT on fees and commissions related to services such as transfer fees, USSD charges, card issuance fees and account maintenance charges.
The agency noted that banks function as collection agents for the government under Nigeria’s established VAT framework, stressing that no new tax had been introduced.
“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 statement, signed by Dare Adekanmbi, Special Adviser on Media to the NRS Chairman, Zacch Adedeji, said.
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The NRS stated that attention is now focused on strengthening enforcement and compliance.
Under this approach, banks, microfinance institutions and electronic money operators are required to ensure the proper collection and remittance of VAT in line with the Nigeria Tax Act.
Against this background, payment platforms, including fintech unicorn Moniepoint, had earlier informed customers that from Monday, January 19, 2026, VAT at 7.5 per cent would apply to service charges on mobile money transfers, USSD transactions and card issuance.
The company clarified that the VAT applies only to service fees and not to the amounts being transferred, emphasising that the charge is a statutory requirement rather than a price increase.
The NRS further explained that the key change relates to compliance and enforcement, not the law itself, adding that financial institutions are being reminded of their obligation to remit VAT already charged and collected from customers.
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According to the agency, the renewed enforcement effort is part of wider moves to standardise VAT collection across Nigeria’s digital financial sector, improve transparency and boost revenue generation amid the expansion of the digital economy.
In a separate message to customers, Moniepoint listed services exempt from VAT, including interest earned on deposits and savings accounts, as well as essential goods, education and medical services. It added that VAT charges would be clearly itemised on transaction statements.
“Services that DO NOT attract VAT include interest on loans and advances, and interest on deposits and savings. Please note: This is not a price increase by Moniepoint. Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service,” the fintech said in an email.
It added that “the NRS has communicated a deadline of 19th January for all financial institutions, commercial banks, microfinance banks and electronic money transfer operators to start collecting and remitting VAT.”
In December, Nigerian banks also began applying a N50 stamp duty on electronic transfers of N10,000 and above, a charge previously referred to as the Electronic Money Transfer Levy and now formally reclassified as stamp duty.