Nigerian Revenue Service Clarifies VAT on Banking Charges Amid Panic

The Nigerian Revenue Service (NRS) responds to VAT concerns related to banking charges, stating that VAT on bank services has existed for decades and is not a new introduction under the Nigeria Tax Act 2025. Arabinrin Aderonke Atoyebi, a technical assistant and broadcast media executive chairman at NRS, explains that VAT is applied to fees charged by banks for services provided, not on the principal amount transferred.

Essential items and services remain exempt from VAT under the tax law. The clarification aims to alleviate anxiety among Nigerians regarding additional financial burdens.