Many bank customers have frowned at the 7.5 per cent Value Added Tax(VAT) on selected electronic banking services, saying taxes are becoming too much for citizens.

Some of them who spoke to the News Agency of Nigeria (NAN) in Abuja on Sunday,  appealed to the Central Bank of Nigeria (CBN) to ensure that banks did not use the guise of the VAT to exploit its customers.

The customers said that although the VAT applied only to service fees and not the amount transferred, the debits on their monies were discouraging and could deter people from patronising banks.

Mrs Evelyn Oputa, a bank customer decried that taxes and bank charges were becoming too much for ordinary Nigerians.

Oputa who said that citizens were currently facing challenging times, appealed to the government to step down the remittance of the VAT.

”In December alone, I received a debit alert where I was charged N1,680 charge on SMS alone and this month, stamp duty charges also increased.

”I bought something and also received a debit of N250 as stamp duty, NIP transfer, electronic money transfer levy, card maintenance fee and various other charges.

”I heard that the stamp duties collected by banks are being remitted to the government, why do they still want banks to remit VAT. ”We, the customers will be the ones at the receiving end,” she said.

Mr Akolam Nzeh, a bank customer alleged that the government was only concerned about tax collection and not the well-being of citizens.

Nzeh urged the government to channel the taxes toward the improvement of infrastructures in the country.

”Its like this year will be a year of tax in this country. Everywhere you turn, you will hear tax.

”The worst part of this is that salaries did not increase yet banks’ charges have kept increasing,” he said.

Another bank customer, Mr Segun Agboola, a customer, appealed to the CBN to monitor the excesses of banks to make ensure they did not charge above what they should.

A banker who preferred anonymity said the bank would not exploit its customers in VAT remittances as they were the basis for their existence.

NAN recalls that the Nigerian Revenue Service (NRS) had mandated all financial institutions (commercial banks, microfinance banks, and electronic money transfer operators) to begin collection and remittance of VAT from Jan. 19.

The tax would apply to various electronic banking charges including Mobile banking transfer fees, Unstructured Supplementary Service Data (USSD) transaction fees, card issuance and activation fees.

Others are Point of Sale (PoS) transaction fees and loan processing and documentation fees.

The VAT would be calculated on the service fee of a transaction, not the principal amount.

Similarly, Small business owners have called on the Federal Government and other relevant stakeholders to implement more effective and accessible interventions to ease rising operating costs, inflation and policy inconsistencies nationwide.

Some of the business owners told the The News Agency of Nigeria (NAN) in separate interviews on Sunday in Abuja  that the situation had weakened revenue generation across key sectors of the economy.

Mr Godwin Achakpa, a business owner in the Federal Capital Territory (FCT), lamented the tough operating environment, saying rising energy and power costs, as well as logistical bottlenecks, were significantly hindering productivity.

Achakpa identified soaring inflation and currency depreciation as factors squeezing profit margins and forcing many small businesses to shut down.

He said limited access to affordable credit remained a critical constraint, with operators often facing high interest rates from commercial banks.

According to him, inconsistent government policies and regulatory bottlenecks have created an unpredictable business environment, thereby worsening operations across the country.

Mrs Agnes Okoro, a business owner operating in the Karu/Nyanya axis, described insecurity as a major disruption to commercial activities and a factor weakening local economies.

Okoro, who also complained of multiple taxation, noted that despite some exemptions for small companies, many still faced overlapping taxes and levies.

“The business community is calling on the government to ensure effective implementation of announced relief programmes. Intervention funds should be easily accessible and transparently disbursed without political bias.

“There is also the need for improved infrastructure, particularly power supply, transportation and digital connectivity, to enhance competitiveness,” she said.

She called for a more stable and predictable policy environment to build business confidence and support long-term planning.

Mr Alfred Moses, a member of the Nigerian Association of Small and Medium Enterprises (NASME), said the association’s objective was to co-ordinate and promote Micro, Small and Medium Enterprises (MSMEs) in Nigeria.

Moses said the current economic hardship was creating a highly challenging operating environment that threatened the survival of MSMEs, with many businesses struggling to stay afloat and some shutting down.

“Economic hardship continues to take a heavy toll on small businesses, increasing operating costs and weakening revenue generation across key sectors.

“Poor electricity supply has forced many businesses to rely on generators and solar power, while fuel price hikes have significantly raised daily operating expenses.

“High inflation and exchange rate volatility have increased the cost of raw materials, particularly imported inputs, and complicated financial planning for small enterprises.

“Declining purchasing power has also reduced consumer spending, leading to lower sales volumes and shrinking profit margins,” he said.

Moses added that access to finance remained a major challenge, as commercial banks classified SMEs as high-risk, demanding high interest rates and stringent collateral.

He emphasised the urgent need for intervention by government and other stakeholders to ensure a more stable business environment, calling for stronger and more frequent engagement between the public and private sectors.

Meanwhile, the President of the Abuja Chamber of Commerce and Industry (ACCI), Chief Emeka Obegolu, has called for policy consistency, MSME protection and private sector-led growth to strengthen Nigeria’s economy in 2026.

Obegolu said that consistent policies and private-sector-friendly reforms were critical to reducing the cost of doing business and achieving sustainable economic development.

He described MSMEs as the backbone of the Nigerian economy and stressed the need for stronger protection and predictable reforms to encourage investment and business expansion.

According to him, high energy costs, rising interest rates and limited access to finance remained key constraints faced by enterprises.

He warned that poorly managed reforms could result in business closures, job losses and capital flight, urging the Federal Government and the FCT Administration to create a more enabling and predictable business environment.

Obegolu noted that Abuja had evolved into a major commercial and investment hub requiring stronger infrastructure and regulatory support, adding that the chamber would remain committed to supporting small business owners.

He reaffirmed ACCI’s commitment to constructive engagement with the government to promote ease of doing business and inclusive economic growth.

In a related development, Dr Jumoke Oduwole, Minister of Industry, Trade and Investment, reiterated the ministry’s commitment to strengthening technical cooperation and knowledge exchange to support MSMEs, improve standards and build industrial capacity.

Oduwole said the Federal Government had rolled out a series of initiatives to support MSMEs and cushion economic hardship, including grants, low-interest loans, job creation incentives and improved access to essential business resources.

According to her, the initiatives are aimed at easing economic hardship and fostering a more resilient business environment.

Meanwhile,  Some traders, business owners now prefer cash payment from customers for goods and services rendered. This followed implementation of the new tax law, a News Agency of Nigeria (NAN) study reveals.

Some of the traders who spoke to NAN in Abuja on Sunday, said the move was the interim measure to sustain their businesses and avoid unnecessary charges.

Customers said the development negated the financial inclusion and mobile banking policies of the Central Bank of Nigeria (CBN).

Mr Fidelis Agbo, a trader at the Building Materials market in Mararaba market said that he was confused about the provisions of the new tax law, hence his preference for cash instead of transfers.

Agbo said that the news making the rounds in the market was that the government would collect tax for every money that drops in a person’s account. ”Since the government will not relent in collecting taxes, we have learnt to do our business with wisdom.

”I now collect cash from my customers for goods purchased. I usually direct my customers to a Point of Sale (PoS) person close to my shop to withdraw money.

”What I do for my big customers is that we split the PoS charges between us. My customers pay half and I pay half so that the burden will not be much on them. ”I intend to continue like this until I understand the tax thing better, ” he said.

Mr Khalid Abbas, also a trader at Nyanya market, said the tax law was still very complex in his eyes and other marketers.

Abbas who also said he collected cash from his customers, disclosed that he was worried about the tax implications on electronic transactions. He said he preferred cash for the fear of being taxed unfairly. ”Cash is straightforward, no complications, no need to involve banks or digital records.

”Before now, I heard that if you put the reason you are sending money to a person (narration), it will not be taxed but later, they said it was not true again. ”As a business owner, I am concerned about the new tax law but I am not sure how it will affect my business.

”To avoid any issues, I prefer to receive cash payments for goods sold just for me to manage my business given the current uncertainty around the tax law,” he said.

Mrs Sarah Onifade, a buyer at Nyanya market, said she was asked to pay tax after the purchase of goods worth over N830,000.

Onifade said the seller received the alert of her transfer but asked her to pay tax of N50,000 on the money as he would be charged by both his bank and the government. ”I was very surprised to hear this because I never understood the tax law like this.

”I ended up paying an additional N20,000 to him after so much dragging back and forth. This is frustrating and discouraging” she said. Mrs Sarah Akator, a business owner, called on various agencies saddled with the responsibility of sensitising the public to do so urgently with a view to making people well informed about the new tax laws.

Akator called on the National Orientation Agency (NOA) and the tax committee to commence awareness and sensitisation programmes, especially in markets and communities to help citizens better understand the law.

She suggested that translating the law into different local languages would aid easy assimilation and understanding.