Nigerian Banks Deduct 7.5% VAT on Card Maintenance Fees, Impacting Customers

Nigerian banks have initiated a 7.5% VAT deduction on card maintenance fees, with customers experiencing the impact through separate transactions. Wema Bank informed customers of changes in cash-related policies to comply with regulatory guidelines.

The move, effective from January 19, 2026, also includes the removal of cash deposit limits to encourage digital payments. Financial expert Gilbert Ayoola explained the rationale behind the VAT implementation on electronic bank services.

The Nigerian Revenue Service mandated financial institutions to collect and remit VAT on eligible electronic banking services to align with tax regulations and increase revenue sources.