From January 19, 2026, Nigerians will start paying a 7.5 percent Value Added Tax (VAT) on certain banking services, including mobile transfers, USSD transactions, and card issuance fees, following a government directive.
Moniepoint notified customers on Wednesday that the new VAT charges would apply to selected electronic banking services, in line with instructions from the Nigerian Revenue Service (NRS), formerly the Federal Inland Revenue Service.
The notice stated: “From Monday, 19 January 2026, we are required to collect a 7.5% VAT, to be remitted to the Nigerian Revenue Service (NRS).”
The company clarified that not all transactions would be taxed, with interest on deposits and savings remaining exempt. Moniepoint emphasized that the VAT is a regulatory requirement and not a price increase.
“This is not a price increase by Moniepoint. VAT applies only to banking or service fees, not interest,” the notice said.
Customers were also assured that the tax would be clearly listed on transaction reports and statements.
The introduction of VAT on these services is expected to affect millions of Nigerians who rely on mobile banking and USSD platforms for everyday financial transactions.
