The Federal Government has directed banks and fintech companies to begin collecting and remitting 7.5 per cent Value Added Tax (VAT) on selected electronic banking service fees, effective Monday, January 19, 2026.
The directive was conveyed 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, Unstructured Supplementary Service Data (USSD) transaction fees, and card issuance fees. The tax will be charged on the service fee itself, not on the amount being transferred.
For instance, where a bank charges N100 as a transfer fee, the 7.5 per cent VAT will be applied to the N100 charge.
Moniepoint stated: “From Monday, January 19, 2026, we are required to collect a 7.5 per cent VAT, to be remitted to the Nigerian Revenue Service (NRS), formerly known as the Federal Inland Revenue Service.
“VAT will apply to certain banking services, including electronic banking charges such as mobile banking fees (transfers), USSD transaction fees, and card issuance fees.”
Other financial service providers are expected to issue similar notices to their customers in the coming days.
The government, through the NRS, has set a compliance deadline for all commercial banks, microfinance banks, and electronic money operators to ensure full collection and remittance of the tax.
Moniepoint emphasised that the VAT implementation does not amount to a price increase but a statutory requirement. “Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service,” the company said.
Services exempted from the VAT include interest earned on deposits and savings, meaning customers will not be taxed on returns from their accounts.
The move forms part of the Federal Government’s broader effort to standardise VAT collection on digital financial services and boost revenue in line with the expansion of Nigeria’s digital economy. While VAT on banking transactions is not entirely new, authorities are now enforcing uniform compliance across all platforms.
Customers were assured that the VAT charges would be clearly itemised, with the tax displayed separately on transaction statements.
Meanwhile, in December, several commercial banks notified customers of the deduction of a N50 stamp duty on electronic transfers of N10,000 and above, following the implementation of provisions of the new Tax Act. The charge, previously referred to as the Electronic Money Transfer Levy (EMTL), has now been formally reclassified as stamp duty and applies as a one-off fee on qualifying transactions.
