Starting January 19, 2026, Nigerians will be required to pay a 7.5% Value Added Tax (VAT) on certain banking services, including mobile bank transfers and USSD transactions, following a new government directive.
The development was disclosed in a notice to customers by Moniepoint, obtained by SaharaReporters, which informed users about the upcoming implementation of VAT on selected electronic banking fees.
The notice explained that the directive comes from tax authorities, requiring financial institutions to collect and remit VAT to the Nigerian Revenue Service (NRS), formerly the Federal Inland Revenue Service.
“From Monday, 19 January 2026, we are required to collect a 7.5% VAT, to be remitted to the NRS,” the notice stated.
The tax will apply to certain banking services, including mobile banking fees (transfers), USSD transaction fees, and card issuance fees. However, not all banking transactions are affected; for instance, interest on deposits and savings will not attract VAT.
Moniepoint clarified that this is not a price increase by the company, emphasizing that it is merely acting as a collector on behalf of the NRS.
The notice also highlighted that all financial institutions—commercial banks, microfinance banks, and electronic money transfer operators—must comply by the January 19 deadline.
Additionally, the VAT will only apply to service charges, and deductions will be clearly itemized on transaction statements for transparency.
This new VAT policy is expected to impact millions of Nigerians who rely on mobile banking and USSD services for daily financial transactions.
About The Author
