THE Federal Government has directed all banks and financial technology companies operating in Nigeria to begin collecting and remitting a 7.5 per cent value-added tax (VAT) on selected electronic banking services, effective Monday, January 19, 2026.
News Point Nigeria reports that the directive was communicated to customers through email notices issued by payment platforms, including Moniepoint, on Wednesday.
According to the notice, the VAT will apply strictly to electronic banking service charges and not to the principal amount of money transferred. Affected services include mobile money transfer fees, Unstructured Supplementary Service Data (USSD) transaction charges, and card issuance fees.
For instance, where a bank charges ₦100 as a transfer fee, the 7.5 per cent VAT will be calculated on the ₦100 service charge, not on the amount being sent.
“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),” Moniepoint stated in its customer notification.
“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,” the notice added.
Other banks and fintech operators are expected to issue similar notifications to their customers in the coming days as the enforcement date approaches.
The Nigerian Revenue Service (NRS), which recently replaced the Federal Inland Revenue Service (FIRS), has set the compliance deadline to ensure that all commercial banks, microfinance banks, and electronic money operators collect and remit the tax as required by law.
Moniepoint clarified that the development does not amount to a price increase by service providers but represents a statutory obligation imposed by the government.
“This is not a fee increase by Moniepoint. We are required by law to collect and remit VAT to the Nigerian Revenue Service,” the company said.
The government explained that the move is part of broader efforts to standardise VAT collection across digital financial services and strengthen revenue mobilisation amid the rapid expansion of Nigeria’s digital economy.
Although VAT on certain banking services has existed in principle, the NRS is now enforcing uniform compliance across all platforms to eliminate inconsistencies and close revenue gaps within the sector.
Customers have been assured that the VAT will be transparently applied, with the tax amount clearly itemised and displayed separately on transaction receipts, statements, and reports.
Meanwhile, services that will remain exempt from VAT include interest earned on deposits and savings, meaning customers will not be taxed on returns generated from their accounts.
The latest directive follows a previous notification by several commercial banks in December, informing customers of the deduction of a ₦50 stamp duty on electronic transfers of ₦10,000 and above, in line with provisions of the new Tax Act.
The charge, previously referred to as the Electronic Money Transfer Levy (EMTL), has since been formally reclassified as stamp duty and is applied as a one-off fee on qualifying electronic transfers.