Starting January 19, 2026, Nigerians will be required to pay a 7.5 per cent Value Added Tax (VAT) on selected banking services, including mobile bank transfers and USSD transactions, following a directive from tax authorities.
SaharaReporters obtained a notice from Moniepoint, sent to customers on Wednesday, which confirmed the implementation of the VAT on certain electronic banking charges. The notice explained that the move aligns with instructions from the Nigerian Revenue Service (NRS), formerly the Federal Inland Revenue Service, mandating financial institutions to collect and remit the tax.
According to the notice, the VAT will apply to “electronic banking charges such as mobile banking fees, USSD transaction fees, and card issuance fees.” However, Moniepoint clarified that not all transactions are affected, noting that services such as interest on deposits and savings accounts are exempt.
The company emphasized that the tax is not a price increase by Moniepoint but a regulatory obligation, stating, “Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service (NRS).”
Financial institutions across the country, including commercial banks, microfinance banks, and electronic money transfer operators, are expected to comply with the January 19 deadline. Moniepoint also assured customers that VAT deductions will be clearly itemized on transaction reports and statements.
The new VAT is anticipated to impact millions of Nigerians who rely on mobile banking platforms and USSD services for daily financial transactions.
