The Federal Government has ordered banks and financial technology companies to collect and remit a 7.5% value-added tax on selected electronic banking services beginning Monday, Jan. 19, 2026.
The directive, conveyed through email notices sent by payment platforms, applies to electronic banking charges such as mobile money transfers, USSD transaction fees and card issuance fees. Customers were informed that the tax will be charged on service fees, not on the amount transferred.
In a notice shared with customers on Wednesday, Moniepoint said the VAT would be deducted on applicable charges and remitted to the Nigerian Revenue Service, formerly known as the Federal Inland Revenue Service.
“For example, if a bank charges N100 to process a transfer, the 7.5% VAT will apply to the N100 service fee, not the funds being sent,” the notice said.
The tax authority has set a deadline for all commercial banks, microfinance banks and electronic money operators to comply with the collection and remittance requirement. Other financial service providers are expected to issue similar notices to customers in the coming days.
Services exempt from the VAT include interest earned on deposits and savings, meaning customers will not be taxed on returns from their accounts.
Moniepoint said the charge does not represent a price increase but a statutory requirement. “Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service,” the company said.
The move is part of the government’s broader effort to standardize VAT collection on digital financial services and boost revenue as Nigeria’s digital economy expands. While VAT on some banking transactions already exists, the tax authority is now enforcing uniform rules across all platforms.
Customers were assured that VAT charges will be clearly itemized and shown separately on transaction statements and reports.
In December, several banks also notified customers that a N50 stamp duty would be deducted on electronic transfers of N10,000 and above following the implementation of provisions of a new tax law. The charge, previously known as the Electronic Money Transfer Levy, has been reclassified as stamp duty and applies as a one-off fee on qualifying transfers
