Nigerians will begin paying a 7.5 per cent Value Added Tax (VAT) on selected banking services, including mobile transfers and USSD transactions, from January 19, 2026, following a directive from the Nigerian Revenue Service (NRS).
The development became public on Wednesday, after leading fintech company Moniepoint issued a notice to its customers informing them of the new VAT charge.
In the notice, Moniepoint stated that it had been mandated by the tax authority to begin collecting the 7.5 per cent VAT on eligible electronic banking service fees and remit same to the government.
According to the company, the charge is not a price increase introduced by financial institutions but a statutory requirement under Nigeria’s existing VAT framework, now extended to selected digital banking services.
The policy will affect millions of Nigerians who rely heavily on mobile banking applications and USSD codes for daily transactions, particularly low-income earners and small business operators.
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Industry observers say the move is part of the Federal Government’s broader strategy to expand the tax base and boost non-oil revenue through improved VAT compliance.
Banks and fintech firms are expected to notify customers and update their billing systems ahead of the January 19 implementation date, as users brace for higher transaction costs across digital banking platforms.