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, on Wednesday.
According to the notice, the VAT will apply to electronic banking charges such as mobile money transfer fees, USSD transaction charges, and card issuance fees. The tax will be charged on the service fee itself, not on the amount being transferred. For instance, where a bank charges N100 for a transfer, a 7.5 per cent VAT will be applied to that N100 charge.
“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),” the notice stated.
It added that VAT would apply to “certain banking services that include electronic banking charges such as mobile banking fees (transfers), USSD transaction fees, and card issuance fees.”
Other financial service providers are expected to issue similar notifications to their customers in the coming days. However, services such as interest earned on deposits and savings will remain exempt, meaning customers will not pay VAT on returns from their accounts.
The Nigerian Revenue Service (NRS) has set a compliance deadline for all commercial banks, microfinance banks, and electronic money operators to ensure proper collection and remittance of the tax.
Moniepoint emphasised that the development does not amount to a price increase but reflects a statutory obligation. “Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service,” the company said.
The move forms part of the Federal Government’s broader strategy to standardise VAT collection on digital financial services and boost revenue generation amid the expansion of Nigeria’s digital economy. While VAT on some banking transactions has existed in the past, the NRS is now enforcing uniform rules across all platforms to ensure sector-wide compliance.
Customers have been assured that the VAT will be transparently itemised, with the tax displayed separately on transaction statements and reports.
Meanwhile, in December, several commercial banks informed customers that a N50 stamp duty would be deducted on electronic transfers of N10,000 and above, following the implementation of provisions in the new Tax Act. The charge, previously known as the Electronic Money Transfer Levy (EMTL), has been formally reclassified as stamp duty and is applied as a one-off fee on qualifying transfers.
