Juliet Jacob 
ABUJA, Nigeria – The Nigeria Revenue Service dismisses claims that a new Value Added Tax has been introduced on banking transactions, describing the reports as false and misleading.
In a statement on Thursday, the Service clarified that VAT has long applied to banking service charges such as fees and commissions, not to customers transferred or withdrawn funds.
“VAT applies strictly to service charges earned by banks, not to the actual money being moved,” the NRS says.
It stresses that the Nigeria Tax Act does not impose any additional VAT burden on electronic transfers or banking transactions.
The agency warns that misinterpretations risk spreading unnecessary panic and confusion among Nigerians.
“The narrative that a new VAT has been imposed on banking transactions is inaccurate,” the statement says.
NRS urges the public to rely on official government communications and verified sources for tax-related information.
Reaffirming its commitment to transparency, the Service says it will continue to provide clear guidance to ensure taxpayers understand existing obligations.
About the Author
Edino Chubiyo Cornelius 
Oluwatobi Adu 
Hussaini Ibrahim 