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Rising deductions are causing suspicion, with Nigerians calling on the CBN to investigate hidden charges and possible financial exploitation.
Bank customers across Nigeria are speaking out against the 7.5% Value Added Tax (VAT) on electronic transactions, claiming that banks are using the policy to add hidden charges. According to the News Agency of Nigeria (NAN), banks are making inconsistent deductions, charging overlapping fees, and sending unclear alerts. This has led people to question whether banks are following VAT rules or taking advantage of customers.
Public Outcry over New Charges
Nigerian bank customers are expressing concern about the 7.5 percent Value Added Tax (VAT) on electronic banking services, saying that banks are using the tax as an excuse for extra deductions.
Mounting Fees And Inconsistent Deductions
Interviews in Abuja show that charges are increasing, including fees for SMS alerts, stamp duties, and card maintenance, with VAT added as well. Customers report that these deductions are often inconsistent and not explained, which makes them suspect that banks are taking advantage of loopholes.
Voices of Frustration
“The charges are becoming unbearable,” said Evelyn Oputa, who showed records of several debits just in December. Another customer, Akolam Nzeh, said the government is focusing more on collecting taxes than on citizens’ welfare, and warned that wages are not increasing enough to match the rising bank fees.
Banks Deny Wrongdoing
Banks say they are not taking advantage of customers and that VAT payments are closely regulated. However, more people are urging the Central Bank of Nigeria (CBN) to look into the issue. Some analysts warn that if these charges continue unchecked, people may lose trust in the financial system and avoid using banks.
Broader Economic Tensions
This controversy highlights a larger problem: Nigeria’s push to raise taxes clashes with the financial struggles of many households. Without stronger oversight, customers worry that the VAT policy could be used to exploit them rather than serve as a fair way to raise revenue.
