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Nigerians to Pay 7.5% VAT on Mobile Transfers, USSD Banking Services

By Desk Round Reports


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

The development was disclosed in a customer notice issued on Wednesday by Moniepoint, which said the measure stems from a directive by tax authorities mandating financial institutions to begin collecting and remitting VAT on specified electronic banking charges.

According to the notice, banks and other financial service providers have been instructed to commence VAT deductions on applicable services from the stated date, in line with national tax regulations.

“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 company explained that the tax would apply to “certain banking services,” including electronic banking charges such as mobile banking transfer fees, USSD transaction fees and card issuance fees.

However, it clarified that not all banking transactions would be affected, revealing that services exempted from VAT include interest earned on deposits and savings, which will remain untaxed.

Moniepoint stressed that the deductions are not a company-led price increase but a statutory obligation imposed across the financial sector.

“This is not a price increase by Moniepoint. We are required to collect and remit VAT to the Nigerian Revenue Service,” it said.

The firm added that the NRS had set January 19, 2026, as the compliance deadline for all financial institutions, including commercial banks, microfinance banks and electronic money transfer operators.

Customers were also assured that the tax would apply strictly to service charges and not to the principal amount involved in transactions. 

VAT deductions, the company stressed, would be clearly itemised on transaction reports and account statements.

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


READ ALSO: 32 Vessels Carrying Fuel, Food to Arrive Lagos Ports – NPA




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