Nigerians to Pay New 7.5% VAT on Mobile Bank Transfers, USSD Transactions from January 19
Nigerians will start paying a 7.5% Value Added Tax (VAT) on certain banking services, including mobile banking transfers and USSD transactions, beginning January 19, 2026, following a new government- supported regulation.
The Nigerian Daily Post received a notice sent to customers on Wednesday around 8: 50 pm by Moniepoint, informing users about the upcoming VAT implementation on specific electronic banking fees.
According to the notice, the change is linked to a directive from tax authorities requiring financial institutions to begin collecting and forwarding VAT.
“We would like to inform you of an upcoming government- endorsed regulatory change regarding Value Added Tax (VAT),” the notice said.
It also stated, “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).”
The company explained that the tax will apply to “certain banking services,” including “electronic banking charges such as mobile banking fees (transfers), USSD transaction fees, and card issuance fees.”
However, Moniepoint clarified that not all banking- related transactions would be taxed, noting that “services that DO NOT attract VAT include: interest on deposits and savings.”
The firm also made it clear that it is not responsible for the new charges, emphasizing that “this is not a price increase by Moniepoint.”
“Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service (NRS),” the notice read.
It further explained that the tax authority has set a clear deadline for compliance across the financial sector.
“The NRS has communicated a deadline of January 19, 2026, for all financial institutions (such as commercial banks, microfinance banks, and electronic money transfer operators) to start collecting and remitting VAT,” the statement said.
Moniepoint also highlighted that the VAT would only apply to service charges, stating that “VAT applies only to banking or service fees, not interest.”
Customers were also told that the deductions would be clearly itemized, with “VAT charge will appear separately on your transaction reports and statements.”
The new VAT enforcement is expected to impact millions of Nigerians who rely on mobile banking and USSD services daily for their financial transactions.
