The Federal Government has directed banks and financial institutions to start collecting a 7.5% Value Added Tax (VAT) on certain banking services like mobile transfers and USSD transactions from January 19, 2026. Moniepoint, a financial services provider, alerted customers about the change, stating it's mandated by tax authorities to collect and remit VAT to the Nigerian Revenue Service (NRS).
Services Affected:
- Mobile banking fees (transfers)
- USSD transaction fees
- Card issuance fees
Services NOT affected:
- Interest on deposits and savings
Moniepoint clarified this isn't a price hike by them but a government directive. VAT charges will show separately on transaction reports.
Millions of Nigerians using mobile banking and USSD services are expected to be impact
Impact:
- Millions of Nigerians using mobile banking and USSD services are expected to be impacted.
- Financial institutions must comply with the directive