Nigerians will begin paying a 7.5 per cent Value Added Tax (VAT) on selected banking services from January 19, 2026, following a new regulatory directive backed by government tax authorities.
The development was disclosed in a customer notice issued on Wednesday by fintech company Moniepoint, which informed users that VAT would now be charged on certain electronic banking fees.
According to the notice, financial institutions have been directed by tax authorities to begin the collection and remittance of VAT on applicable services.
“We would like to inform you of an upcoming government-endorsed regulatory change regarding Value Added Tax (VAT),” Moniepoint 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 would apply to certain banking services, including electronic banking charges such as mobile transfer fees, USSD transaction fees and card issuance charges.
However, Moniepoint clarified that not all banking-related transactions would attract the tax. Services exempted from VAT include interest earned on savings and deposits.
The fintech firm also stressed that the deductions were not a decision taken by Moniepoint and should not be interpreted as an increase in service charges.
“This is not a price increase by Moniepoint. We are mandated to collect and remit VAT to the Nigerian Revenue Service,” the notice read. “The NRS has set January 19, 2026, as the deadline for all financial institutions including commercial banks, microfinance banks and electronic money transfer operators to begin VAT collection and remittance. VAT applies only to banking or service fees, not interest.”
Customers were also assured of transparency, as VAT charges would be clearly itemised. “The VAT charge will appear separately on your transaction reports and statements,” Moniepoint added.
The enforcement of the new VAT policy is expected to impact millions of Nigerians who depend heavily on mobile banking apps and USSD services for their day-to-day financial transactions.
