Nigerians will soon pay a 7.5 percent Value Added Tax on some banking services, including mobile transfers and USSD transactions, beginning January 19, 2026, following a new government-backed regulatory directive
The planned implementation was made known in a customer notice issued on Wednesday by Moniepoint, alerting users that VAT would now be charged on certain electronic banking fees.
Moniepoint explained that the directive came from tax authorities, instructing financial institutions to begin collecting and remitting VAT on applicable services.
The notice stated: “We would like to inform you of an upcoming government-endorsed regulatory change regarding Value Added Tax (VAT).
“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).”
According to the company, the VAT will apply to “certain banking services”, specifically “electronic banking charges such as mobile banking fees (transfers), USSD transaction fees and card issuance fee”.
Moniepoint, however, clarified that several transactions would remain exempt from the tax. “Services that DO NOT attract VAT include: interest on deposits and savings,” the notice said.
The fintech firm also stressed that the deductions were not initiated by the company and should not be seen as a price increase.
“This is not a price increase by Moniepoint. Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service (NRS).
“The NRS has communicated a deadline for 19th January 2026 for all financial institutions — commercial banks, microfinance banks and electronic money transfer operators — to start collecting and remitting VAT. VAT applies only to banking or service fees, not interest,” it added.
Customers were further informed that the VAT charges would be transparently displayed, as “VAT charge will appear separately on your transaction reports and statements”.
The enforcement of the new VAT regime is expected to impact millions of Nigerians who depend daily on mobile banking platforms and USSD services for routine financial transactions.
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It is corruption that is making tinubu to borrow and impose various taxes upon poor and struggling nigerians even with the crude oil that is bringing huge revenue.مTinubu just write off nnpc debt.A whole oil producing nation is into debt.Nigeria is a third world country and we paid different types of taxes but we dont see the dividend.