The Federal Government has directed all banks and financial technology companies to begin collecting and remitting a 7.5 per cent value-added tax (VAT) on selected electronic banking services, effective Monday, January 19, 2026.
The directive was communicated to customers through email notices issued by payment platforms, including Moniepoint, on Wednesday. According to the notice, the VAT will apply to electronic banking charges such as mobile money transfer fees, USSD transaction fees, and card issuance fees.
Under the new arrangement, the VAT will be charged on the service fee only, not on the amount being transferred. For instance, if a bank charges ₦100 for a transfer, the 7.5 per cent VAT will be applied to that ₦100 fee.
“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),” the email stated. “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.”
ALSO: FCCPC Brings 521 Digital Lenders Under Regulation Amid Nigeria’s Digital Credit Crackdown
Other banks and fintech operators are expected to issue similar notices to customers in the coming days. However, services such as interest earned on savings and deposits will remain exempt, meaning customers will not pay VAT on returns from their accounts.
The Nigerian Revenue Service (NRS) has set compliance deadlines for all commercial banks, microfinance banks, and electronic money operators to ensure uniform collection and remittance of the tax.
Moniepoint emphasised that the development does not amount to a price increase but reflects a statutory obligation. “Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service,” the company said.
The move forms part of the Federal Government’s broader effort to standardise VAT collection on digital financial services and boost revenue mobilisation as Nigeria’s digital economy expands. While VAT on banking services is not entirely new, the NRS is now enforcing consistent rules across all platforms to strengthen compliance.
Customers have been assured that the VAT will be clearly itemised and shown separately on transaction statements.
In December, several banks had also notified customers of the deduction of a ₦50 stamp duty on electronic transfers of ₦10,000 and above, following the implementation of provisions in the new Tax Act. The charge, previously known as the Electronic Money Transfer Levy (EMTL), has since been formally reclassified as stamp duty and is applied as a one-off fee on qualifying transfers.
Comments 1