The Federal Government has directed all banks and financial technology companies to begin the collection and remittance of a 7.5 per cent value-added tax (VAT) on specified electronic banking services, effective Monday, January 19, 2026.
The directive, conveyed through notices issued by payment platforms, applies to service charges on electronic transactions such as mobile money transfers, USSD transaction fees and card issuance fees.
In an email notification to its customers on Wednesday, fintech firm Moniepoint explained that the VAT would be charged on the service fee itself, not on the amount being transferred. For instance, where a bank charges ₦100 as a transfer fee, the 7.5 per cent VAT will apply only to that ₦100 charge.
“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 the Federal Inland Revenue Service),” the notice read. “VAT will apply to certain banking services, including electronic banking charges such as mobile banking fees, USSD transaction fees and card issuance fees.”
Other banks and fintech operators are expected to issue similar notifications to customers in the coming days, in line with the directive from the Nigerian Revenue Service (NRS).
Services exempt from the VAT include interest earned on savings and deposit accounts, meaning customers will not be taxed on returns accrued on their balances.
The NRS has set a compliance deadline for all commercial banks, microfinance banks and electronic money operators to ensure full adherence to the VAT collection and remittance requirement.
Moniepoint stressed that the development does not amount to a price increase but reflects a statutory obligation imposed by law. “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 efforts to standardise VAT collection on digital financial services and expand revenue mobilisation in line with the rapid growth of Nigeria’s digital economy. While VAT on banking services is not entirely new, the current directive signals a renewed push to enforce uniform compliance across all financial platforms.
Customers have been assured that the VAT charges will be clearly itemised, with the tax shown separately on transaction statements and reports.
In a related development, several commercial banks had, in December, notified customers of the deduction of a ₦50 stamp duty on electronic transfers of ₦10,000 and above, following the implementation of provisions of 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 electronic transfers.
