Starting Monday, January 19, 2026, Nigerian bank customers will begin paying a 7.5% Value Added Tax (VAT) on electronic banking services, including mobile transfers and USSD payments. The directive, issued by the Nigeria Revenue Service (NRS)—formerly the FIRS—requires all financial institutions, including commercial banks and fintechs like Moniepoint and Opay, to collect and remit the tax.
In notices sent to customers on January 14, Moniepoint clarified that the tax applies only to service fees, such as transfer charges and card issuance fees, and not to the principal amount being transferred.
The implementation follows a strict deadline set by the NRS for all electronic money transfer operators and microfinance banks to align with the federal government’s revenue expansion goals. According to the regulatory guidelines, interest on deposits, savings, and loan principals remain exempt from this VAT regime.
The move has already drawn criticism from advocacy groups like the National Association of Telecom Subscribers (NATCOMS), whose president, Deolu Ogunbanjo, described the extra charge on the existing N6.98 USSD session fee as a “burden of double taxation” on millions of Nigerians who rely on mobile banking.
