Nigerians will face a new 7.5-percent value-added tax on fees for mobile bank transfers and USSD transactions starting January 19, under a directive from tax authorities requiring financial institutions to collect and remit the levy.
The policy, announced by fintech firm Moniepoint in a customer notice, applies to electronic banking charges including card issuance fees, but exempts interest on deposits and savings.
“We would like to inform you of an upcoming government-endorsed regulatory change regarding Value Added Tax (VAT),” the Moniepoint notice stated.
It added: “From Monday, 19 January 2026, we are required to collect a 7.5% VAT, to be remitted to the Nigerian Revenue Service (NRS) (formerly known as the Federal Inland Revenue Service).”
The tax will be itemized separately on transaction reports and statements, affecting services provided by commercial banks, microfinance banks and electronic money transfer operators.
Moniepoint emphasized that “this is not a price increase by Moniepoint” and that the VAT “applies only to banking or service fees, not interest.”
The NRS has set January 19 as the deadline for all relevant institutions to begin implementation, according to the notice.
The move is expected to impact millions of users reliant on mobile and USSD platforms for daily transactions in Africa’s most populous nation.
