The Federal Government has directed banks and fintech companies to begin collecting and remitting 7.5 per cent value-added tax on selected electronic banking services from Monday, January 19, 2026.
The directive, conveyed through email notices issued by payment platforms to customers, applies to charges on services such as mobile money transfers, USSD transaction fees and card issuance fees, but not to the funds being transferred.
In a notice sent by Moniepoint, customers were informed: “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 Nigerian Revenue Service has set a compliance deadline for all commercial banks, microfinance banks and electronic money operators, as part of efforts to standardise VAT collection across digital financial platforms and boost government revenue.
Moniepoint emphasised that the charge does not amount to a price increase, stating that it is a statutory obligation, while assuring customers that VAT will be clearly itemised on transaction statements.
Interest earned on deposits and savings remains exempt, and customers will not pay tax on returns from their accounts, even as the policy builds on recent fiscal measures, including the enforcement of stamp duty on electronic transfers of N10,000 and above under the new Tax Act.