National News
BREAKING: FG to begin 7.5% VAT on bank transfers, USSD transactions January 19
Nigerians 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 to financial institutions.
A notice obtained by SaharaReporters and sent to customers by digital bank Moniepoint on Wednesday confirmed the development, attributing the new charges to instructions from tax authorities.
According to the notice, banks and other financial service providers have been directed to commence the collection and remittance of VAT on specific electronic banking services.
“We would like to inform you of an upcoming government-endorsed regulatory change regarding Value Added Tax (VAT),” Moniepoint said.
The firm disclosed that from January 19, it would begin collecting the tax on behalf of the Nigerian Revenue Service (NRS), formerly known as the Federal Inland Revenue Service (FIRS).
The VAT will apply to certain banking services, including mobile banking transfers, USSD transaction fees and card issuance charges.
However, Moniepoint clarified that not all financial services would attract the tax, noting that interest earned on savings and deposits remains VAT-exempt.
The fintech company also stressed that the new charges do not represent an increase in its service fees.
“This is not a price increase by Moniepoint,” the notice stated, adding that the firm is “required to collect and remit VAT to the Nigerian Revenue Service (NRS).”
It further explained that the tax authority had issued a firm deadline mandating commercial banks, microfinance banks and electronic money transfer operators to comply with the directive from January 19, 2026.
Moniepoint assured customers that the VAT deductions would be transparent, stating that the charges would be clearly itemised on transaction receipts and account statements.
The enforcement of VAT on electronic banking services is expected to affect millions of Nigerians who depend daily on mobile banking platforms and USSD channels for routine financial transactions.
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