Nigerian Bank users will start paying a 7.5% Value Added Tax (VAT) on some selected banking services.
This includes mobile bank transfers and USSD transactions beginning from January 19, 2026, following a new regulatory directive backed by the Federal Government.
According to a notice that Moniepoint sent to its customers on Wednesday, January 14, 2026, informing users of the implementation of the VAT charges on some selected electronic banking transactions.
As revealed by the Bank, the directive was issued by the Nigerian government, mandating financial institutions to begin the collection and remittance of VAT.
“We would like to inform you of an upcoming government-endorsed regulatory change regarding Value Added Tax (VAT).
“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 Bank said that the tax would apply to “certain banking services”, including “electronic banking charges such as mobile banking fees (transfers), USSD transaction fees, and card issuance fees”.
The firm, however, clarified that not all banking transactions would attract the tax.
“Services that DO NOT attract VAT include: interest on deposits and savings,” the notice stated.
The Bank also distanced itself from responsibility for the new charges, saying the deductions were not a price increase by the company.
“This is not a price increase by Moniepoint. Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service (NRS).
“The NRS has communicated a deadline for 19th January 2026 for all financial institutions, commercial banks, microfinance banks, and electronic money transfer operators, to start collecting and remitting VAT. VAT applies only to banking or service fees, not interest,” the statement added.
According to the Bank’s statement, VAT charges will appear separately on your transaction reports and statements.
The new VAT enforcement policy is projected to affect millions of users who rely daily on mobile banking platforms and USSD services for financial services.
