The Federal Government has instructed banks and fintech companies to begin charging and remitting a 7.5 per cent value-added tax on selected electronic banking services, effective Monday, January 19, 2026, according to notices from payment platforms.
An email sent to customers by Moniepoint on Wednesday said the VAT will apply to electronic banking charges such as mobile money transfers, USSD transaction fees, and card issuance fees.
The tax will be charged on the service fee only, not on the amount being transferred. For instance, where a bank charges N100 for a transfer, the 7.5 per cent VAT will be applied to that N100 fee.
“From Monday, January 19, 2026, we are required to collect a 7.5 per cent VAT, to be remitted to the Nigerian Revenue Service (formerly known as the Federal Inland Revenue Service).
“VAT will apply to certain banking services that include electronic banking charges such as mobile banking fees (transfers), USSD transaction fees, and card issuance fees,” the email read.
Other operators are expected to send similar notices to their customers in the coming days. However, certain services will remain exempt, including interest earned on deposits and savings, meaning customers will not be taxed on returns from their accounts.
The Nigeria Revenue Service, formerly the Federal Inland Revenue Service, has set the deadline for all commercial banks, microfinance banks, and electronic money operators to comply with the VAT collection and remittance requirement.
Moniepoint emphasised that the charge does not represent a price increase but a statutory obligation.
“Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service,” the company said in a statement.
The move forms part of the government’s wider push to standardise VAT collection on digital financial services and boost revenue as Nigeria’s digital economy expands.
While VAT on banking transactions is not entirely new, the NRS is now enforcing uniform rules across all platforms to ensure sector-wide compliance.
Customers have been assured that the tax will be clearly itemised, with VAT displayed separately on transaction statements and reports.
In December, several commercial banks notified customers that a ₦50 stamp duty would be charged on electronic transfers of ₦10,000 and above, following the implementation of provisions in the new Tax Act.
