The Federal Government has directed all banks and financial technology companies to begin collecting and remitting a 7.5 per cent value-added tax (VAT) on selected electronic banking services, effective Monday, January 19, 2026.
The directive was communicated to customers through email notices issued by payment platforms, including Moniepoint, which disclosed that the VAT will apply to electronic banking charges such as mobile money transfers, USSD transaction fees and card issuance fees.
Under the new arrangement, the tax will be charged on the service fee and not on the actual amount being transferred. For instance, where a bank charges N100 as a transfer fee, the 7.5 per cent VAT will apply only to the N100 charge.
In its notice to customers, Moniepoint stated that from January 19, it is required by law to collect the VAT and remit it to the Nigerian Revenue Service (NRS), formerly known as the Federal Inland Revenue Service.
“VAT will apply to certain banking services, including electronic banking charges such as mobile banking fees (transfers), USSD transaction fees, and card issuance fees,” the company said.
Other banks and fintech operators are expected to issue similar notifications to their customers in the coming days. However, some services will remain exempt from VAT, including interest earned on savings and deposit accounts, meaning customers will not be taxed on returns from their funds.
The NRS has set a compliance deadline for all commercial banks, microfinance banks and electronic money operators to fully implement the VAT collection and remittance framework.
Moniepoint emphasised that the move does not amount to a price increase, describing it instead as a statutory requirement. “Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service,” the company said.
The policy forms part of the Federal Government’s broader efforts to standardise VAT collection on digital financial services and boost revenue generation in Nigeria’s expanding digital economy. While VAT on banking transactions is not entirely new, the NRS is now enforcing uniform compliance across all platforms.
Customers have been assured that the VAT will be transparently displayed, with the tax clearly itemised on transaction receipts and account statements.
Meanwhile, in December, several commercial banks notified customers of the commencement of N50 stamp duty deductions on electronic transfers of N10,000 and above, following the implementation of provisions in the new Tax Act.
The charge, previously referred to as the Electronic Money Transfer Levy (EMTL), has now been formally reclassified as stamp duty and will be applied as a one-off fee on qualifying electronic transactions.