Nigerian bank customers will begin paying a 7.5 per cent Value Added Tax (VAT) on selected banking services from January 19, 2026, following a new government-backed regulatory directive.
The tax will apply to certain electronic banking transactions, including mobile app transfers, USSD transactions and card issuance fees, according to a notice issued to customers by fintech bank Moniepoint on Wednesday, January 14, 2026.
In the notification, the bank explained that the directive was issued by the Federal Government, mandating all financial institutions to commence the collection and remittance of VAT on eligible service charges.
Moniepoint stated that, in line with the new regulation, it is required to deduct 7.5 per cent VAT on applicable banking services and remit the proceeds to the Nigerian Revenue Service (NRS), formerly known as the Federal Inland Revenue Service (FIRS).
The bank clarified that the tax would not apply to all transactions, stressing that interest earned on savings and deposits remains VAT-exempt.
It also emphasized that the deductions are not the result of an increase in its service fees but a compliance measure imposed by the government.
According to the notice, the Nigerian Revenue Service has set January 19, 2026, as the deadline for commercial banks, microfinance banks, fintechs and electronic money transfer operators to begin VAT collection on qualifying banking charges.
Moniepoint added that VAT deductions will be shown separately on customers’ transaction statements to ensure transparency.
The enforcement of the policy is expected to impact millions of Nigerians who depend heavily on mobile banking platforms and USSD services for daily financial transactions.
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