Concerns are growing among Nigerian bank customers following the introduction of a 7.5 per cent Value Added Tax (VAT) on certain electronic banking services, with many warning that the increasing cost of banking could discourage usage.
Customers who spoke to the News Agency of Nigeria (NAN) in Abuja called on the Central Bank of Nigeria (CBN) to prevent banks from using the VAT policy to impose excessive charges on account holders.
While the VAT applies only to transaction service fees and not to transferred sums, customers said the deductions, combined with existing bank charges, were having a significant financial impact.
Mrs Evelyn Oputa described the rising number of deductions as overwhelming, particularly at a time when many Nigerians are struggling economically. She urged the government to suspend or review the VAT policy.
“In December, I was charged N1,680 for SMS alerts alone,” she said. “This month, stamp duty charges have increased, and after a simple purchase I was debited N250 covering stamp duty, NIP transfer fees, electronic money transfer levy, card maintenance fees and other charges.”
She questioned the rationale behind imposing VAT when banks already remit stamp duties to the government, adding that customers were unfairly bearing the burden.
Mr Akolam Nzeh, another bank customer, claimed that the government appeared more focused on revenue generation than on citizens’ welfare. He stressed that any taxes collected should be visibly invested in infrastructure development.
“Everywhere you turn now, it’s about taxes,” he said. “Salaries have not gone up, but bank charges keep increasing.”
Similarly, Mr Segun Agboola appealed to the CBN to strengthen its oversight of banks to ensure compliance with approved charges.
A bank official, who spoke on condition of anonymity, said financial institutions would not exploit customers through VAT remittances, noting that maintaining customer trust was essential to their business.
According to NAN, the Nigerian Revenue Service directed all financial institutions to commence VAT collection and remittance from 19 January. The VAT covers electronic banking services such as mobile and USSD transfers, card issuance and activation, PoS transactions, and loan documentation fees, and is charged only on service fees, not on the principal transaction amounts.
