Manny Ita
The Nigeria Revenue Service (NRS) issued a comprehensive clarification on Friday, January 16, 2026, to address widespread public concern regarding rumored new taxes on electronic money transfers and personal savings. In a statement signed by Dare Adekanmbi, Special Adviser on Media to the NRS Chairman, Dr. Zacch Adedeji, the agency dismissed reports of a new levy on “principal sums,” describing such narratives as “misleading” and designed to cause unnecessary panic within the financial system.
The revenue agency emphasized that the 7.5% Value-Added Tax (VAT) currently being discussed is not a fresh imposition under the Nigeria Tax Act 2025, but an existing statutory requirement applied specifically to bank service fees rather than the actual funds being moved. “VAT only applies to bank service fees, such as transfer charges, and not the actual money being sent,” the statement read, further explaining that the tax is calculated solely on the commission or convenience fee charged by the financial institution for the transaction.
According to the NRS, the recent flurry of notifications from commercial banks and fintech platforms, including Moniepoint and others, is the result of a government-mandated compliance deadline effective Monday, January 19, 2026. This directive requires all financial service providers, including Microfinance Banks and Point of Sale (POS) operators, to strictly remit the VAT collected on their service charges to the federal government. The agency noted that while transfer fees, USSD session charges, and card issuance fees remain taxable, the “principal amount,” interest earned on savings, and general personal assets are explicitly exempt from this tax.
Dr. Zacch Adedeji also used the briefing to dispel rumors that the tax office has gained unrestricted access to monitor personal bank account descriptions or that it intends to execute “asset grabs” on private deposits. “The government cannot and will not automatically debit your account for taxes without a legal assessment,” the Chairman stated, adding that the NRS remains committed to a transparent tax regime that does not infringe upon the privacy of individual citizens or discourage financial inclusion. The clarification comes as a relief to many small-scale entrepreneurs and daily wage earners who had expressed fears that the 7.5% VAT would be deducted from their total transaction volumes.
