The federal government has instructed banks and financial technology firms to begin collecting and remitting 7.5 per cent value-added tax on specific electronic banking services starting Monday, January 19, 2026.
A notice shared by Moniepoint on Wednesday informed customers that the tax will apply to fees charged on transactions such as mobile money transfers, USSD services and card issuance.
It clarified that the VAT applies strictly to the service charge and not the transaction amount.
“For example, if a bank charges N100 to make a transfer, the 7.5 per cent VAT will be applied to that service fee, not the money being sent,” Moniepoint stated.
The email further noted: “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 known as the Federal Inland Revenue Service).
“VAT will apply to certain banking services that include electronic banking charges such as mobile banking fees (transfers), USSD transaction fees, and card issuance fees.”
Other service providers are expected to circulate similar advisories in the coming days.
Services exempt from the new rule include interest on savings and deposits, meaning customers will not be taxed on earnings from their accounts.
The Nigerian Revenue Service (NRS) has communicated compliance deadlines to commercial banks, microfinance banks, and electronic money operators to ensure full VAT collection and remittance.
Moniepoint emphasised that the notice should not be viewed as a service charge hike but as a regulatory mandate.
“Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service,” the company added.
The directive aligns with the government’s push to streamline VAT enforcement across the digital financial ecosystem and broaden revenue mobilisation as online transactions expand.
Although taxes on banking transactions are not entirely new, the latest measure introduces uniformity across platforms.
Customers have also been assured that the VAT component will be itemised on transaction statements for visibility.
In December, several commercial banks notified users that the N50 stamp duty would now apply to electronic transfers of N10,000 and above under provisions of the new Tax Act. The fee, previously known as EMTL, has been formally reclassified as stamp duty and will be deducted once on eligible transfers.