…Demand clarity, CBN oversight
Nigeria’s sweeping tax reforms are beginning to hit everyday life, sparking growing frustration among bank customers, tenants and businesses who say the new charges are poorly explained, inconsistently applied and increasingly burdensome amid rising living costs.
Across the banking sector, customers are already feeling the impact of the newly enforced 7.5% Value Added Tax (VAT) on selected electronic banking services, which takes effect from January 19 following a directive by the Nigerian Revenue Service, (NRS). The VAT applies to service charges on mobile and online transfers, USSD transactions, card issuance and activation, Point of Sale (PoS) fees, and loan processing costs — though not on the principal sums transferred.
In Abuja, several customers who spoke to newsmen at the weekend lamented that while they understood the tax applies only to service fees, the cumulative debits were discouraging and risked pushing people away from the formal banking system.
Many appealed to the Central Bank of Nigeria (CBN) to closely monitor banks and prevent the VAT from becoming a cover for excessive or arbitrary charges.
A customer, Evelyn Oputa, lamented what she described as ‘charge fatigue’, noting that Nigerians were grappling with inflation, stagnant wages and rising costs on multiple fronts. She cited heavy SMS alert charges, higher stamp duties and a long list of transaction-related fees, questioning why VAT was being added when banks already remit other statutory deductions to government. “It’s the customers who always bear the burden. Salaries have not increased, but bank charges keep going up”, she lamented.
Another customer, Akolam Nzeh, accused government of prioritising tax collection over citizens’ welfare, warning that without visible improvements in infrastructure and services, public resentment would deepen. He urged the CBN to rein in banks and ensure strict compliance with approved charges.
The public mood suggests scepticism runs deep. Beyond banking halls, the tax backlash is spreading into homes and workplaces.
An opinion article circulating widely captures what many describe as a “generational reset” in Nigeria’s tax regime colliding with daily realities — and confusion.
The writer recounts receiving a rent renewal notice demanding an additional 10% withholding tax, allegedly in line with the new tax policy, but offering no clear explanation of whether the charge applies only to commercial properties or also to residential tenants. That uncertainty, the writer argues, reflects a broader failure in the rollout of the Nigeria Tax Act 2025: inadequate public education and conflicting interpretations. “Landlords, agents, tenants and businesses are left navigating a fog of rules, often passing costs down the chain out of fear of non-compliance” , he stated.
The result, critics warn, is taxation by “Chinese whisper” – where ambiguity itself becomes a cost. For tenants, it threatens sudden rent hikes; for businesses, unclear rules around tax stamps, e-invoicing and compliance could erode productivity and fuel inflation.
The Manufacturers Association of Nigeria, (MAN) has already cautioned that such uncertainty could undermine the intended gains of the reform.
