Nigerians will start paying a 7.5 per cent Value-Added Tax (VAT) on selected banking services, including mobile bank transfers and USSD transactions, from January 19, 2026, following a directive from the Nigerian Revenue Service, (NRS).
The development was disclosed in a notice sent to customers by Moniepoint on Wednesday, informing them of a government-backed regulatory change mandating financial institutions to begin collecting and remitting VAT on certain electronic banking charges.
According to the notice, the VAT will apply to service fees such as mobile banking transfer charges, USSD transaction fees and card issuance fees. However, Moniepoint clarified that not all banking transactions would attract the tax, noting that interest on deposits and savings remains VAT-exempt.
“We would like to inform you of an upcoming government-endorsed regulatory change regarding Value Added Tax (VAT),” the company said, adding that from January 19, it is required to collect the 7.5% VAT and remit it to the NRS, formerly known as the Federal Inland Revenue Service, (FIRS).
The new VAT enforcement is expected to affect millions of Nigerians who rely heavily on mobile banking platforms and USSD services for daily financial transactions.
However, the fintech firm stressed that the new charge is not a price increase by Moniepoint but a statutory tax obligation imposed by the tax authority. It also noted that the NRS has set January 19, 2026, as the compliance deadline for all financial institutions, including commercial banks, microfinance banks and electronic money transfer operators.
Moniepoint further assured customers that VAT deductions would be transparently displayed, stating that the tax would appear separately on transaction reports and account statements and would apply only to service charges, not interest.
Other Nigerian banks are also expected to implement the VAT on transfers and USSD transactions from the same date, with the charge coming on top of existing banking fees.
As of Wednesday, no official public statement had been issued by the NRS.
