Nigerians will begin paying a 7.5 percent Value Added Tax on selected banking services, including mobile transfers and USSD transactions, from January 19, 2026, following a new government-backed regulatory directive.
A notice sent to customers by fintech firm, Moniepoint, on Wednesday indicated that the tax would be collected in line with a directive from the nation’s tax authorities.
The notice affirmed that, financial institutions have been mandated to commence the collection and remittance of VAT on specific electronic banking charges.
“We would like to inform you of an upcoming government-endorsed regulatory change regarding Value Added Tax,” Moniepoint stated.
It added, “From Monday, 19 January 2026, we are required to collect a 7.5% VAT, to be remitted to the Nigerian Revenue Service (NRS), formerly known as the Federal Inland Revenue Service.”
The company disclosed that the VAT would apply to certain banking services, including mobile banking fees such as transfer charges, USSD transaction fees and card issuance fees.
However, it clarified that not all banking transactions would attract the tax. “Services that do not attract VAT include interest on deposits and savings,” the notice stated.
Moniepoint stressed that the development was not a price increase by the company, explaining that it was acting in compliance with regulatory instructions.
“This is not a price increase by Moniepoint. We are required to collect and remit VAT to the Nigerian Revenue Service,” it said.
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The firm also revealed that the tax authority had set January 19, 2026, as the deadline for compliance by all financial institutions, including commercial banks, microfinance banks and electronic money transfer operators.
It further assured customers that the VAT would be applied strictly to service charges and not to interest, adding that all VAT deductions would be transparently displayed.
“VAT applies only to banking or service fees, not interest. The VAT charge will appear separately on your transaction reports and statements,” Moniepoint stated.
The new VAT regime is expected to affect millions of Nigerians who rely daily on mobile banking platforms and USSD services for routine financial transactions.
