iDeemlawfulNigerians will begin paying a 7.5 per cent Value Added Tax (VAT) on selected banking services, including mobile transfers and USSD transactions, from January 19, 2026, following a new government-backed regulatory directive.
The development was disclosed in a customer notice issued on Wednesday by Moniepoint, alerting users to the planned introduction of VAT on specific electronic banking charges.
According to the notice, the directive was issued by tax authorities, requiring financial institutions to commence the collection and remittance of VAT.
Part of the notice read: “We would like to inform you of an upcoming government-endorsed regulatory change regarding Value Added Tax (VAT).
MOST READ ARTICLES
“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).”
Moniepoint stated that the tax would apply to “certain banking services”, including “electronic banking charges such as mobile banking fees (transfers), USSD transaction fees and card issuance fee”.
The company, however, clarified that the VAT would not apply to all banking transactions.
“Services that DO NOT attract VAT include: interest on deposits and savings,” the notice stated.
Moniepoint further explained that the charges were not the result of any increase in its service fees, distancing itself from responsibility for the deductions.
“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 said.
Customers were also informed that the deductions would be transparently reflected, as “VAT charge will appear separately on your transaction reports and statements”.
The development comes as Nigeria begins implementing newly enacted tax laws signed into law in June 2025.