By Nchetachi Chukwuajah
Banks and other financial institutions will begin charging 7.5 per cent Value-Added Tax (VAT) on certain banking services that include electronic banking charges such as mobile banking fees (transfers), USSD transaction fees, and card issuance fees from Monday, January 19.
This was contained in notices sent by financial institutions, including commercial banks, microfinance banks and electronic money transfer operators, cited by Impact Nigeria Newspaper on Wednesday, January 14.
According to a notice from Moniepoint, financial institutions are required to collect the 7.5 per cent VAT and remit the same to the Nigerian Revenue Service (NRS) (formerly known as Federal Inland Revenue Service).
The notice reads: “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 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 fee.”
The notice further noted that services that do not attract VAT include interest on deposits and savings.
It added that the move is not a price increase by the financial institution.
The notice added: “Please note: 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.
“VAT charge will appear separately on your transaction reports and statements.”
The development comes days after the commencement of the implementation of the new tax laws, which introduced sweeping reforms aimed at overhauling Nigeria’s tax system to enhance revenue generation, streamline tax administration, and improve the Nigerian business climate.
