Millions of Nigerians will begin paying a 7.5 percent Value Added Tax (VAT) on certain banking services starting January 19, 2026, as part of the government’s ongoing tax reforms. The charges will apply to electronic banking transactions, including mobile bank transfers and USSD payments, following a directive from tax authorities.
The notice, sent to customers on Wednesday by Moniepoint, explained that financial institutions are required to collect and remit VAT to the Nigerian Revenue Service (NRS), formerly the Federal Inland Revenue Service. The statement said: “From Monday, 19 January 2026, we are required to collect a 7.5% VAT, to be remitted to the Nigerian Revenue Service (NRS).”
Moniepoint clarified that the tax applies to selected banking services such as mobile banking transfer fees, USSD transaction fees, and card issuance fees, while other transactions, including interest on deposits and savings, are exempt.The company emphasised that this is not a price increase by Moniepoint, but a legal requirement. “Moniepoint is required to collect and remit VAT to the NRS. The VAT applies only to banking or service fees, not interest,” the notice added.
Customers were also assured that VAT charges would be clearly itemised on transaction reports and statements. The introduction of the VAT on banking services is expected to impact millions of Nigerians who regularly use mobile banking and USSD platforms for their financial transactions.
Source: https://www.theconclaveng.com/
