The Federal Government has issued a directive mandating all banks and financial technology companies (fintechs) in Nigeria to collect and remit 7.5 per cent Value Added Tax (VAT) on service charges from customers. This measure aims to enhance compliance and ensure the effective collection of government revenue.
According to recent guidelines, the Nigerian Revenue Service (NRS) formerly known as Federal Inland Revenue Service (FIRS) will oversee the enforcement of VAT remittance on fees and commissions generated from banking and financial services. All affected institutions are required to adhere strictly to the new regulation, which takes immediate effect from Monday, January 19th, 2026.
The government emphasized that the move is part of ongoing efforts to strengthen the country’s tax system, improve transparency, and support national development initiatives. Stakeholders in the financial sector have been urged to cooperate fully with the authorities to ensure seamless implementation.
