The Federal Government has directed all banks and fintechs to collect and remit a 7.5 per cent value-added tax (VAT) on certain electronic banking services, effective Monday, January 19, 2026, according to email notices issued by payment platforms.
The VAT will apply to charges such as mobile money transfers, USSD transaction fees, and card issuance fees, the notices explained. For instance, if a bank charges N100 for a transfer, the 7.5 per cent VAT will be applied to the service fee, not the amount being sent.
“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 the Federal Inland Revenue Service),” the email read. “VAT will apply to certain banking services, including electronic banking charges such as mobile banking fees (transfers), USSD transaction fees, and card issuance fees.”
Other operators are expected to issue similar notices to their customers in the coming days. Exempt services include interest earned on deposits and savings, meaning customers will not pay tax on returns from their accounts.
The NRS has set the deadline to ensure that all commercial banks, microfinance banks, and electronic money operators comply with the collection and remittance requirement.
Moniepoint, one of the affected platforms, stressed that the move is not a price increase but a statutory obligation. “Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service,” the company said.
The initiative is part of the government’s broader effort to standardise VAT collection on digital financial services and boost revenue amid Nigeria’s growing digital economy. While VAT on banking transactions is not new, the NRS is now enforcing uniform collection rules across all platforms to ensure sector-wide compliance.
Customers have been assured that the tax will be clearly itemised, with VAT shown separately on transaction statements and reports.
In a related development, several commercial banks in December informed customers that a N50 stamp duty would be deducted on electronic transfers of N10,000 and above, following provisions of the new Tax Act. Previously known as the Electronic Money Transfer Levy (EMTL), the charge has now been formally reclassified as stamp duty and applies as a one-off fee on qualifying electronic transfers.
