The Nigeria Revenue Service (NRS) has dismissed reports suggesting that new Value Added Tax (VAT) charges have been introduced on banking services in Nigeria.
In a statement issued on Thursday, the agency described the circulating claims as misleading and intended to cause confusion among account holders and financial service users across the country.
According to the NRS, no fresh directive has been issued imposing additional VAT on electronic transfers, deposits, or withdrawals conducted through banks and other financial institutions.
The agency clarified that existing VAT deductions applied by banks are in line with the provisions of the Value Added Tax Act, which has not undergone any recent amendment regarding financial transactions.
“The public is advised to disregard any message or publication alleging new VAT charges on banking services,” the statement read.
“The FIRS (now NRS) has not introduced any new tax or increased existing rates. The VAT currently applicable remains at 7.5 percent, consistent with existing law and previous guidelines issued by the Service.”
The clarification followed a wave of concerns on social media and among banking customers after screenshots of alleged “new VAT deductions” began circulating early in the week.
Many Nigerians had expressed outrage over what they erroneously believed to be another layer of charges, citing the rising cost of living and inflation already weighing heavily on individuals and businesses.
Reacting to the misconception, the NRS explained that any deductions customers observe in their bank statements are in line with normal VAT procedures on eligible transactions, such as payment processing or service fees by banks, not on deposits or transfers themselves.
“VAT is only applicable on taxable goods and services, not on the movement of money,” the agency emphasized.
Economic analysts have welcomed the clarification, noting that preserving public understanding of tax policy is crucial for maintaining trust between the government and citizens.
Dr. Obinna Nwosu, a Lagos-based tax consultant, said false reports about new levies could undermine compliance and fuel unnecessary anxiety.
“When misinformation spreads unchecked, people lose confidence in the system. The NRS did the right thing by responding quickly,” he noted.
The Service further reaffirmed its commitment to transparency and public engagement in Nigeria’s tax administration.
It called on citizens to verify claims about tax-related matters through official communication channels, including its verified social media pages and website.
Meanwhile, the Central Bank of Nigeria (CBN) and major commercial banks have also assured customers that no new charges have been introduced beyond the regulated rates already in force.
The NRS concluded its statement by encouraging Nigerians to stay informed and to view taxation as a collective responsibility that supports national development, while assuring that any future fiscal changes would be duly announced and explained through appropriate platforms before implementation.