Nigerians sending money to family, paying school fees, or settling business bills can breathe easier. The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has made it clear that the government does not charge Value Added Tax on the actual money people transfer. What attracts VAT, he explained, is only the small service fee that banks collect for processing the transaction.
Speaking to address growing anxiety among bank customers, Oyedele said the rule has been in place since VAT was first introduced in 1993 and nothing new has been added. “Your money is not being taxed when you send it to someone. VAT applies only to the commission the bank charges for providing that service,” he emphasized.
In recent weeks, many Nigerians had worried that electronic transfers were becoming more expensive because of a supposed new tax. Traders, students, salary earners, and small business owners expressed fears that such a policy would make daily survival even harder in an already challenging economy.
Oyedele described those fears as understandable but unnecessary, noting that misinformation spreads quickly, especially on social media. He assured citizens that the ongoing tax reforms are meant to simplify the system and protect ordinary people, not to take more from their pockets.
Financial experts welcomed the clarification, saying it would help rebuild confidence in digital banking, which millions of Nigerians now rely on for everyday life. They urged banks to also be more transparent in explaining their charges so customers can clearly see what they are paying for.
For many households that depend on frequent transfers to support relatives or run small enterprises, the message offers relief: the money they send remains theirs, and only the cost of the banking service attracts VAT—just as it has been for over three decades.