Taiwo Oyedele, Chairman, Presidential Committee on Fiscal Policy and Tax Reforms, has come out to clarify that, Value Added Tax (VAT) is charged “only” on the banking fee or commission.
He added, VAT is not charged on the money transferred.
Oyedele said, VAT on banking fee or commission has been in place since the introduction of VAT in 1993.
Oyedele posted on X: “There is NO VAT on the money you transfer. VAT is only charged on the banking fee or commission which has been the case since VAT was introduced in 1993.”
Also, the Nigeria Revenue Service (NRS) explained via a Press Release that, VAT charged on banking fees did not come through the Nigeria Tax Act.
The Press Release titled ‘VAT on Banking Fees was not introduced by the Nigeria Tax Act’, signed by the Nigeria Revenue Service on Thursday 15 January, 2026, reads: “The Nigeria Revenue Service (NRS) wishes to address and correct misleading narratives circulating in sectors of the media suggesting that Value Added Tax (VAT) has been newly introduced on banking services, fees, commissions or electronic money transfers.
“This claim is categorically incorrect.
“VAT has always applied to fees, commissions, and charges for services rendered by banks and other financial institutions under Nigeria’s long-established VAT regime.
“The Nigeria Tax Act dis not introduce VAT on banking charges, nor did it impose any new tax obligation on customers in this regard.
“The Nigeria Revenue Service urges members of the public and all stakeholders to disregard misinformation and to rely exclusively on official communications for accurate, authoritative and up-to-date tax information.”
