Turns out the 7.5% VAT is not on the money you send. It’s only on the transfer fee banks already charge for things like mobile transfers, USSD, POS, and similar services. So if your bank charges N50 as a transfer fee, the VAT is N3.75. That’s it. The amount you’re sending stays untouched.

Is it still annoying? Yes. Especially for small traders who move money multiple times a day and will feel every extra naira. But it’s nowhere near the scary deductions people were imagining.

This whole thing just shows how poor communication fuels unnecessary fear. With digital banking becoming everyday life, clarity matters. A lot.