Discover How to Avoid New Card Fees (VAT) in Nigerian Banks

Discover How to Avoid New Card Fees (VAT) in Nigerian Banks

The Banks across Nigeria have started charging a 7.5 percent Value Added Tax (VAT) on card maintenance fees and specific electronic banking expenses. This change has left many Nigerian bank customers confused. The new tax is set to be officially implemented on January 19, 2026, serving as a preliminary test for the upcoming regulation.

Discover How to Avoid New Card Fees (VAT) in Nigerian Banks

Let’s break this down. If you’ve noticed that your N50 card maintenance fee is now being accompanied by an extra N3.75, you’re not imagining things. That’s VAT added right there, courtesy of a fresh directive from the Nigerian Revenue Service (NRS). A Wema Bank customer recently received a debit alert that made it clear: you’re now being charged for that maintenance fee and the VAT is being treated like peanut butter on toast—spread out separately, even if your balance looks the same after the first bite.

As usual, change is never welcomed with open arms. Reactions from unsuspecting customers have been less than enthusiastic as many find themselves grappling with the reality of paying VAT on banking services for the first time. This new arrangement isn’t just a random move; it’s all about promoting standard tax practices in the digital economy.

Wema Bank is leading the charge in updating its policies, alerting customers via email about these changes to cash management and electronic operations in line with regulatory requirements. Effective January 1, 2026, the bank aims to bolster security and promote the use of digital payment options by eliminating limits on cash deposits. Yes, you read that right—unlimited deposits without incurring extra charges. That’s one silver lining in all this taxation talk.

However, in an effort to clarify what exactly this means for customers, the NRS has taken to the airwaves to ensure folks understand that only service fees are subject to VAT. Transfers and deposits? You can breathe easy because they remain exempt. They’ve clearly stated, “VAT has always applied to fees, commissions, and charges for services rendered by banks and other financial institutions under Nigeria’s long-established VAT regime.” So, no sudden new taxes on your hard-earned money, just more visibility on the fees you’re already paying.

The NRS also wants you to toss aside any misinformation that might be floating around, reminding everyone to turn to official sources for the facts. So, if that random WhatsApp message claims a new tax on all banking activities, just roll your eyes and scroll on.

In other noteworthy updates, financial expert Gilbert Ayoola recently explained how this VAT on mobile banking transfers and USSD transactions ties in with the government’s broader aim to be more compliant with federal tax regulations and boost revenue streams.

So, there you have it—a little more tax action in the banking arena. Make sure to keep tabs on your statements, and don’t let those VAT charges catch you off guard. Banking may be evolving, but understanding your fees shouldn’t feel like rocket science.