Nigerians will begin paying a 7.5 per cent Value Added Tax (VAT) on selected banking services, including mobile bank transfers and USSD transactions, starting January 19, 2026, following a new directive from tax authorities.
The development was disclosed in a customer notice issued on Wednesday by Moniepoint, which said the directive mandates financial institutions to commence the collection and remittance of VAT on specific electronic banking charges.
According to the notice, the tax will apply to certain services such as mobile banking transfer fees, USSD transaction charges and card issuance fees. However, Moniepoint clarified that some banking services, including interest on savings and deposits, will remain exempt from VAT.
“We would like to inform you of an upcoming government-endorsed regulatory change regarding Value Added Tax (VAT),” the company stated. “From Monday, 19 January 2026, we are required to collect a 7.5% VAT, which will be remitted to the Nigerian Revenue Service (NRS), formerly known as the Federal Inland Revenue Service.”
The company stressed that the VAT is not a price increase introduced by Moniepoint but a statutory obligation imposed by the tax authorities. It added that all affected financial institutions—including commercial banks, microfinance banks and electronic money transfer operators—have been given January 19, 2026, as the deadline to comply.
Moniepoint also assured customers that the VAT would be charged only on service fees and not on interest, noting that all VAT deductions would be clearly itemised and reflected separately on transaction statements.
The enforcement of the VAT on electronic banking services is expected to impact millions of Nigerians who rely daily on mobile banking platforms and USSD channels for financial transactions.
