BREAKING NEWS: FG Clears Air on ‘New’ VAT Charges as Nigerians Panic Over Bank Deductions

January 17, 2026
The Federal Government has issued an urgent clarification following widespread panic and confusion over reports of new VAT charges on bank transactions, insisting that no new tax has been introduced on Nigerians’ money.

In recent days, customers of banks and fintech platforms across Nigeria began receiving notifications indicating that 7.5% Value Added Tax (VAT) would now apply to certain electronic banking services — sparking outrage and fears of higher transaction costs amid the country’s economic hardship.

However, ZANCEN YAU 247 has gathered that, the Nigeria Revenue Service (NRS) has moved swiftly to calm nerves, explaining that the development is not a fresh tax, but rather the proper enforcement of an existing VAT law.

ZANCEN YAU 247  has unveiled that the controversy erupted after banks and fintech companies announced plans to begin itemising VAT on service charges such as:
Mobile and online transfer fees
USSD banking charges
Card-related service fees
Other electronic banking service costs

Many Nigerians wrongly assumed that VAT would now be deducted from the actual amount sent or withdrawn.

FG’s Official told ZANCEN YAU 247 that VAT has always applied to bank service charges, even before the recent tax reforms. What is happening now is strict compliance and remittance enforcement, not the creation of a new levy.

Customers are NOT paying VAT on their money, but only on the service fee charged by banks or fintechs.

“There is no new VAT on bank transfers or deposits. The VAT applies strictly to the service charge, not the transaction amount,” an NRS official said.

The source further explained to ZANCEN YAU 247 that If your bank charges ₦100 as a transfer fee VAT at 7.5% = ₦7.50. You are not taxed on the ₦50,000 or ₦100,000 you send, only on the ₦100 service fee; that VAT Does not apply to Savings or fixed deposit interest; the principal amount transferred; or personal funds held in accounts.

Analysts say the confusion stems from:
Banks now clearly displaying VAT deductions
Fintechs beginning full compliance at the same time
Poor public communication amid rising cost-of-living pressures

 Investigations by ZANCEN YAU 247 revealed that despite viral claims and heated social media reactions, there is NO new VAT on bank transfers in Nigeria. The government insists Nigerians are only seeing better transparency and enforcement of an already existing tax rule.

Still, consumer advocacy groups are calling on banks and regulators to improve communication to avoid future panic.

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