Nigeria’s Revenue Service (NRS) has moved to shut down widespread reports claiming that the new Nigeria Tax Act introduced Value Added Tax (VAT) on banking services such as transfers, withdrawals, and commissions.
According to the agency, VAT on bank charges is not new and was not introduced by the latest tax reforms. Rather, it has always applied to specific service fees charged by banks.
What Nigerians Are Actually Taxed On
The NRS explained that Nigerians are not being taxed on the money they send or withdraw. Instead, VAT applies strictly to the service charges imposed by banks.
These include fees for Bank transfers, USSD transactions, Card issuance, and Account maintenance,
For example, if a bank charges ₦10 for a transfer, VAT is calculated on that ₦10 — not on the amount being transferred.
Enforcement, Not a New Law
The agency said the current confusion stems from enforcement, not legislation. Banks are being reminded to properly remit VAT they already collect, in line with existing tax laws.
The NRS also stressed that the new tax regime does not introduce VAT on savings, interest earned, food, healthcare, or education.
How the Confusion Started
In June 2025, President Bola Tinubu signed four major tax reform bills into law. While some provisions took effect in mid-2025, others came into force on January 1, 2026.
Since then, partial explanations, misinterpretations, and social media commentary have fueled public concern, prompting the tax authority to clarify its position.
Oyedele Rejects Claims of Implementation Pause
Meanwhile, Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has pushed back against reports suggesting that the Federal Government paused the release of implementation guidelines for the new tax laws.
The report claimed Oyedele said agencies such as the NRS and the Joint Revenue Board were told to delay action because the final version of the laws was unclear. The comments were reportedly made at a recent ICAN event in Lagos.
Oyedele acknowledged that multiple versions of the tax laws are in circulation, but said this does not mean implementation has been halted. He explained that his team merely sought an authenticated printed copy from the Government Printer, as required by law, but was informed that all copies were with the National Assembly.
He later dismissed the report entirely, sharing a screenshot of the headline on X and stamping it “Fake News.”
