JUST IN: Nigerians to pay 7.5% VAT on bank transfers, USSD transactions from January 19

Nigerians will begin paying a 7.5 percent Value Added Tax (VAT) on selected banking services, including mobile bank transfers and USSD transactions,from January 19, 2026, following a new regulatory directive backed by the Federal Government.

The development was disclosed in a notice sent to customers on Wednesday by Moniepoint, informing users of the impending implementation of the VAT regime on certain electronic banking charges.

According to the notice, the directive was issued by tax authorities mandating financial institutions to begin the collection and remittance of VAT.

Part of the notice read: “We would like to inform you of an upcoming government-endorsed regulatory change regarding Value Added Tax (VAT).

“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).”

Moniepoint said the tax would apply to “certain banking services”, including “electronic banking charges such as mobile banking fees (transfers), USSD transaction fees and card issuance fee”.

The company, however, clarified that not all banking transactions would attract the tax.

“Services that DO NOT attract VAT include: interest on deposits and savings,” the notice read.

Moniepoint also distanced itself from responsibility for the new charges, saying the deductions were not a price increase by the company.

“This is not a price increase by Moniepoint. Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service (NRS).

“The NRS has communicated a deadline for 19th January 2026 for all financial institutions — commercial banks, microfinance banks and electronic money transfer operators — to start collecting and remitting VAT. VAT applies only to banking or service fees, not interest,” it said.

Customers were also informed that the deductions would be clearly itemised, as “VAT charge will appear separately on your transaction reports and statements”.

The new VAT enforcement is expected to affect millions of Nigerians who rely daily on mobile banking platforms and USSD services for financial transactions.