According to an email notice sent by payment platforms, the Federal Government of Nigeria has instructed all banks and fintechs to collect and send 7.5 per cent value-added tax on specific electronic banking services starting on Monday, January 19, 2026.
- According to an email notice sent by payment platforms, the Federal Government of Nigeria has instructed all banks and fintechs...
- Moniepoint sent out an email on Wednesday informing customers that the VAT will be applied to electronic banking fees, such...
- “From Monday, January 19, 2026, we are required to collect a 7.5 per cent VAT, to be remitted to the...
- In order to guarantee that all commercial banks, microfinance banks, and electronic money operators adhere to the collection and remittance...
Keep reading for the full breakdown on 7.5% VAT on electronic banking — everything you need to know is covered below.
Moniepoint sent out an email on Wednesday informing customers that the VAT will be applied to electronic banking fees, such as mobile money transfers, USSD transaction fees, and card issuance fees.
For instance, if a bank charges N100 for a transfer, the 7.5 per cent VAT will be applied to the service charge rather than the transferred funds.
“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,” the email read.
Exemption of customer deposits and savings
In the upcoming days, similar notices are anticipated to be sent to customers by other operators. Interest earned on savings and deposits will continue to be exempt services, so clients won’t have to pay tax on their account returns.
In order to guarantee that all commercial banks, microfinance banks, and electronic money operators adhere to the collection and remittance requirement, the NRS, formerly known as the Federal Inland Revenue Service, has set a deadline.
Moniepoint emphasised that this is a legal requirement rather than a price increase. According to a statement from the company,“Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service.”
Government’s efforts to improve revenue generation
The action is a component of the government’s larger initiatives to increase revenue generation in light of Nigeria’s expanding digital economy and standardise VAT collection on digital financial services. Although VAT on banking transactions is not completely new, the NRS is now enforcing consistent collection guidelines on all platforms to guarantee industry compliance.
Customers have been reassured that the VAT will be displayed separately on transaction statements and reports, and the new tax will be clearly itemised.
Following the implementation of the new Tax Act’s provisions, a number of commercial banks notified their clients in December that electronic transfers totalling N10,000 or more would be subject to a N50 stamp duty deduction.
The fee, formerly known as the EMTL, will now be applied as a one-time fee on eligible electronic transfers and has been officially reclassified as stamp duty.