The President Bola Tinubu-led Federal Government has ordered all banks and fintechs to collect and remit a 7.5 percent value-added tax on certain electronic banking services, effective Monday, January 19, 2026, according to an email notice issued by payment platforms.
The VAT would apply to electronic banking expenses such as mobile money transfers, USSD transaction fees, and card issue fees, according to an email notice sent to customers on Wednesday by Moniepoint.
For example, if a bank costs N100 to make a transfer, the 7.5 percent VAT will be charged to the service fee rather than the money sent.
“From Monday, January 19, 2026, we are required to collect a 7.5 percent 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 carriers are anticipated to send out similar notifications to their clients in the following days.
Interest generated on deposits and savings will continue to be exempt, which means clients will not be taxed on their account returns.
The NRS, formerly known as the Federal Inland Revenue Service, has set a deadline for all commercial banks, microfinance institutions, and electronic money operators to comply with the collection and remittance requirements.
Moniepoint emphasized that this is not a price hike but rather a statutory responsibility. “Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service,” according to a business statement.
The move is part of the government’s larger efforts to standardize VAT collection on digital financial services and increase revenue generation in Nigeria’s rapidly growing digital economy.
VAT on banking transactions is not wholly new; the NRS is now enforcing uniform collection rules across all platforms, guaranteeing sector-wide compliance.
Customers have been told that the new tax will be clearly itemized, with VAT displayed separately on transaction statements and reports.
Following the implementation of the new Tax Act’s provisions, several commercial banks told customers in December that the N50 stamp tax will be deducted on electronic transactions of N10,000 or more.
The levy, formerly known as the EMTL, has been formally categorized as stamp duty and will be levied as a one-time cost on eligible electronic transfers.
