The Nigeria Revenue Service (NRS) has firmly debunked widespread claims of a newly introduced 7.5% Value Added Tax (VAT) on electronic money transfers and banking services, calling such reports "incorrect and misleading."

In an official clarification issued today Thursday, the NRS emphasized that VAT has always applied to bank fees, commissions, and service charges since Nigeria's VAT system began in 1993.

The recent Nigeria Tax Act (signed June 2025) did not create any new tax on these items or add fresh burdens on customers.

Key Facts from the NRS Statement:

– VAT applies only to the small service fee charged by the bank (e.g., ₦50–100 for a transfer or USSD session) adding roughly ₦4–8 extra at 7.5%.

– No VAT on the principal amount you send or receive, interest on savings/deposits, or exempt items like basic food, medical services, and education.

– Banks and fintechs like Moniepoint, Opay etc, are required to collect and remit this existing VAT starting January 19, 2026, as part of strengthened compliance not because of any new levy.

The confusion erupted after several banks and platforms sent customer notices about upcoming VAT collection on service fees, which many misinterpreted as a brand-new tax on transfers amid Nigeria's ongoing economic pressures.

The NRS urged Nigerians to ignore misinformation and rely on official channels for tax updates, as part of broader efforts to improve transparency in the digital economy.

The clarification aims to ease public anxiety following the rollout of various tax reforms in early 2026.