The Federal Government said on Thursday that value-added tax on banking services is not a new policy, after reports (not The PUNCH) suggested the levy had recently been introduced on electronic money transfers and other transactions.
The clarification followed public complaints from bank customers who believed fresh charges had been imposed on routine services at a time when inflation and higher living costs are squeezing households.
In a statement, the Nigeria Revenue Service said existing tax laws already require banks to charge and remit VAT on fees and commissions for services such as transfer fees, USSD charges, card issuance fees, and account maintenance charges.
The agency said banks act as collection agents for the government under Nigeria’s established VAT regime, adding 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.
The NRS explained that the focus has now shifted to 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 provisions of the Nigeria Tax Act.
Against this backdrop, payment platforms, including fintech unicorn Moniepoint, had earlier notified 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 emphasised that the VAT applies only to service fees and not to the amounts being transferred, stressing that the move is a statutory requirement rather than a price increase.
The NRS further explained that what has changed is compliance and enforcement, not the law itself, adding that financial institutions are being reminded of their existing obligation to remit VAT already charged and collected from customers.
According to the agency, the renewed enforcement drive forms part of broader efforts to standardise VAT collection across Nigeria’s digital financial sector, improve transparency, and expand revenue generation amid the country’s growing digital economy.
In a separate communication to customers, Moniepoint said services exempt from VAT include interest earned on deposits and savings accounts, as well as essential goods, education, and medical services. It added that customers would see VAT clearly itemised on their 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 known as the Electronic Money Transfer Levy and now formally reclassified as stamp duty.
