The Federal Government has directed banks and fintech companies to begin collecting and remitting a 7.5 per cent value-added tax (VAT) on selected electronic banking services from Monday, January 19, 2026.
The directive, communicated through email notices issued by payment platforms, applies to service charges on mobile money transfers, USSD transactions, and card issuance fees. Customers will be taxed only on the service fee, not on the amount transferred.
For instance, where a bank charges N100 as a transfer fee, VAT will be applied to the N100 charge alone. Payment platform Moniepoint confirmed the development in a notice to customers on Wednesday.
“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 company said, adding that the tax applies strictly to specified electronic banking charges.
Moniepoint stressed that the VAT is not a price increase but a statutory requirement mandated by the tax authorities. Other banks and fintech operators are expected to issue similar notifications in the coming days.
Services exempted from the VAT include interest earned on savings and deposit accounts, meaning customers will not be taxed on returns from their funds.
The Nigerian Revenue Service has directed all commercial banks, microfinance banks, and electronic money operators to comply with the uniform VAT collection framework, part of broader efforts to standardise taxation of digital financial services and boost government revenue in Nigeria’s expanding digital economy.
The development follows earlier notices by banks on the deduction of N50 stamp duty on electronic transfers of N10,000 and above, as provided under the new Tax Act, reinforcing the government’s push to strengthen compliance across financial transactions.
