The Federal Government has directed all banks and fintech companies to collect and remit a 7.5 per cent value-added tax (VAT) on certain electronic banking services, with effect from Monday, January 19, 2026. The directive was communicated to customers through email notices issued by payment platforms.
According to an email notice shared by Moniepoint on Wednesday, the VAT will apply to electronic banking charges such as mobile money transfers, USSD transaction fees, and card issuance fees. The tax will be calculated on the service charge itself, not on the amount being transferred.
For instance, where a bank charges N100 as a transfer fee, the 7.5 per cent VAT will be applied to that N100 service fee, while the transferred funds remain unaffected.
The notice stated: “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 known as the Federal Inland Revenue Service).
“VAT will apply to certain banking services that include electronic banking charges such as mobile banking fees (transfers), USSD transaction fees, and card issuance fees.”
Other financial service operators are expected to issue similar notifications to their customers in the coming days. However, some services will remain exempt, including interest earned on deposits and savings, meaning customers will not pay tax on returns generated from their accounts.
VAT compliance and stamp duty enforcement explained
The Nigerian Revenue Service (NRS), formerly the Federal Inland Revenue Service, has set a compliance deadline for all commercial banks, microfinance banks, and electronic money operators to ensure proper collection and remittance of the VAT.
Moniepoint emphasised that the development does not amount to a price increase but is a statutory requirement. “Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service,” the company said.
The directive forms part of the Federal Government’s broader efforts to standardise VAT collection on digital financial services and expand revenue generation in line with Nigeria’s growing digital economy. While VAT on banking transactions is not entirely new, the NRS is now enforcing uniform collection rules across all platforms to ensure sector-wide compliance.
Customers have also been assured that the VAT charges will be transparently itemised, with the tax shown separately on transaction statements and reports.
In December, several commercial banks had informed customers that a N50 stamp duty would be deducted on electronic transfers of N10,000 and above, following the commencement of provisions of the new Tax Act.
The charge, previously known as the Electronic Money Transfer Levy (EMTL), has since been formally reclassified as stamp duty and is applied as a one-off fee on qualifying electronic transfers.
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