Business

VAT on Banking Services: Setting the record straight

Published

3 months ago

January 21, 2026

By Arabinrin Aderonke

In recent days, Nigerians have been inundated with reports suggesting that the Federal Government has introduced Value Added Tax (VAT) on banking services such as electronic transfers, fees and commissions. Understandably, this has triggered anxiety among citizens already grappling with economic pressures.
However, the truth is far less dramatic than the headlines suggest.

Contrary to widespread claims, VAT on banking services is not new. It was not introduced by the Nigeria Tax Act, 2025, and it does not represent an additional financial burden on bank customers.
For decades, Nigeria’s VAT framework has applied to fees, commissions and charges for services rendered by banks and other financial institutions.

What has changed is not the law, but enforcement.
The Nigeria Revenue Service (NRS) has been compelled to clarify this point following a wave of misinformation that blurred the line between service charges and actual funds transferred. VAT is not, and has never been, charged on the amount of money a customer transfers or withdraws.

Rather, it applies strictly to the service fee imposed by the bank.

This distinction is critical. When a customer transfers ₦10,000 or ₦1 million, VAT is not deducted from the transferred sum. It is calculated only on the small service charge associated with the transaction.

Interest earned on savings accounts and fixed deposits also remains exempt, as it does not constitute a supply of goods or services under the law.

Equally important is what VAT does not cover. Basic food items, essential goods, medical and pharmaceutical products, as well as educational services, remain firmly exempt under the Nigeria Tax Act, 2025. These protections were deliberately preserved to shield ordinary Nigerians from unnecessary hardship.

So why the sudden public concern?The answer lies in improved compliance and enforcement. Financial institutions are being reminded of their obligation to remit VAT already charged and collected. This renewed focus has created the false impression of a new tax, when in reality, it is the implementation of an existing one.

Tax reforms often attract controversy, especially in times of economic strain. Yet clarity must prevail over confusion. Spreading inaccurate information undermines public trust and distracts from the real conversation Nigeria must have about transparency, accountability and effective tax administration.

The Nigeria Revenue Service has made it clear that the Nigeria Tax Act, 2025, does not introduce any new VAT burden on ordinary citizens, particularly in sensitive areas such as savings, food, healthcare and education.

As Nigerians, we deserve honest explanations not alarmist headlines. In a democracy, scrutiny is healthy, but it must be anchored on facts.

The task before us is not to fear taxation, but to demand that taxes already in place are administered fairly, communicated clearly, and used responsibly for national development. That is the conversation worth having.

Arabinrin Aderonke Atoyebi is the Technical Assistant on Broadcast Media to the Executive Chairman of the Nigeria Revenue Service.

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Business

NEXIM Bank Advances Inclusive Growth Through Women and Ethical Leadership

Published

2 days ago

April 16, 2026

The Gleamer

Joel Ajayi

The Managing Director and Chief Executive Officer of Nigeria Export-Import Bank, Mr. Abba Bello, has positioned women, ethical standards, and strong institutional values as central pillars of the Bank’s strategy to drive inclusive growth and enhance Nigeria’s global competitiveness.

Speaking during activities marking the 2026 International Women’s Month, Bello emphasised that empowering women goes beyond symbolism, describing it as critical to societal stability and economic productivity.

Represented by the Executive Director, Corporate Services, Mr. Ibrahim Gaga, he stressed that women remain indispensable to both family and national development.

According to him, the role of women in society cannot be overstated, urging a shift in perception and greater respect for their contributions. He noted that when given leadership opportunities, women consistently demonstrate diligence, precision, and high performance.

Reinforcing the Bank’s commitment to institutional excellence, Executive Director, Business Development, Stella Okotete, highlighted the importance of workplace values in building trust and sustaining growth.

She linked inclusion directly to development outcomes, noting that when women support one another, institutions become stronger, communities more stable, and nations progress faster. She reaffirmed NEXIM Bank’s commitment to empowering women across Nigeria’s export value chain.

Offering a private sector perspective, Chief Executive Officer of Kulu Abuja, Hauwa Abdulkareem, advocated collaboration over competition among women.

Drawing from her experience, she emphasised the power of support networks, referrals, and visibility in advancing careers.

She challenged women to prioritise value creation over financial gain, encouraging a mindset focused on impact and contribution.

On governance and ethical leadership, legal practitioner and clergy, Sally William Chinedu, presented a three-pronged framework centred on values, ethics, and active sisterhood.

She described values as actions taken even in the absence of oversight, while defining ethics as a safeguard for reputation. She further called for intentional inclusion, urging organisations to amplify women’s voices and eliminate exclusionary practices.

Chinedu outlined practical steps for cultural transformation, encouraging individuals to uphold integrity, speak up for what is right, and actively support female colleagues in the workplace.

In her welcome remarks, Manager, Corporate Communications at NEXIM Bank, Lohya Mamven, reiterated the institution’s commitment to inclusivity.

She stressed that investing in women is not only a matter of equity but a catalyst for sustainable development and economic prosperity.

The event, themed “Give to Gain: Shaping Women for Leadership and Legacy,” underscored a clear policy direction: embedding strong values, enforcing ethical accountability, and promoting collaboration as key drivers of institutional performance and inclusive growth.

At its core, the message from NEXIM Bank was clear—“Give to Gain” is more than a theme; it is a governance approach aimed at building integrity, strengthening trust, and unlocking the full potential of women in advancing Nigeria’s economic future.

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