Nigeria’s Revenue Service debunks claims of fresh VAT on banking

On today's Techpoint Digest, we discuss NRS debunking claims of new VAT on banking, Falana winning a $25,000 lawsuit against Meta over a viral video, and Starlink lowering upfront costs with a pay-small plan.

Hallo,

Victoria from Techpoint here,

Here’s what I’ve got for you today:

NRS debunks claims of fresh VAT on banking

Falana wins $25K case against Meta over viral video

Starlink cuts upfront costs with pay-small plan

NRS debunks claims of fresh VAT on banking

FIRS

If your bank transfer alert this week came with a side of panic about “new VAT charges,” you’re not alone, but you’ve also been misled. Nigeria’s Revenue Service (NRS) has come out to shut down reports claiming the new Nigeria Tax Act slapped VAT on banking services like transfers, fees, and commissions. According to the agency, VAT on bank charges is not new and was not introduced by the latest tax law.

What this means is simple: Nigerians are not being taxed on the money they send or withdraw. VAT only applies to the service charge banks collect. Things like transfer fees, USSD charges, card issuance, and account maintenance. If a bank charges ₦10 for a transfer, VAT applies to that ₦10, not the amount you sent.

The confusion, the NRS says, is really about enforcement, not legislation. Banks are being reminded to properly remit VAT they already collect, in line with existing law. No fresh VAT burden has been placed on savings, interest earned, food, healthcare, or education.

How did we get here? In June 2025, President Bola Tinubu signed four major tax reform bills into law, with some provisions kicking in mid-2025 and others from January 1, 2026. Since then, half-understood summaries and social media hot takes have done the rounds, prompting the taxman to step in and clear the air.

Related Story: Orange taps JUMO to bring AI-driven loans to mobile users

Meanwhile, Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has pushed back against reports claiming the Federal Government has paused the release of implementation guidelines for the new tax laws. The report had quoted him as saying agencies like the Nigeria Revenue Service and the Joint Revenue Board were told to hold off be...