BREAKING: Nigerians To Pay 7.5% VAT On Mobile Bank Transfers, USSD Transactions

Nigerians will begin paying a 7.5 per cent Value Added Tax (VAT) on selected banking services, including mobile bank transfers and USSD transactions, starting from January 19, 2026, following a new government-backed regulatory directive. This development was disclosed in a customer notice issued on Wednesday by Moniepoint, a leading financial service provider.

According to the notice obtained by Ibom Focus, the directive was issued by tax authorities mandating financial institutions to begin the collection and remittance of VAT on certain electronic banking charges. “We would like to inform you of an upcoming government-endorsed regulatory change regarding Value Added Tax (VAT),” Moniepoint stated in the notice. “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 company explained that the VAT will apply to specific banking services, including electronic banking charges such as mobile banking transfer fees, USSD transaction fees, and card issuance fees. However, Moniepoint clarified that not all banking transactions will be affected. Services