Nigerians will start paying a 7.5 p.c Worth Added Tax (VAT) on chosen banking companies, together with cellular {bank} transfers and USSD transactions,from January 19, 2026, following a brand new regulatory directive backed by the Federal Authorities.
The event was disclosed in a discover despatched to prospects on Wednesday by Moniepoint, informing customers of the upcoming implementation of the VAT regime on sure digital banking costs.
Based on the discover, the directive was issued by tax authorities mandating {financial} establishments to start the gathering and remittance of VAT.
A part of the discover learn: “We want to inform you of an upcoming government-endorsed regulatory change relating to Worth Added Tax (VAT).
“From Monday, 19 January 2026, we’re required to gather a 7.5% VAT, to be remitted to the Nigerian Income Service (NRS) (previously often known as the Federal Inland Income Service).”
Moniepoint stated the tax would apply to “sure banking companies”, together with “digital banking costs resembling cellular banking charges (transfers), USSD transaction charges and card issuance payment”.
The corporate, nevertheless, clarified that not all banking transactions would entice the tax.
“Providers that DO NOT entice VAT embody: curiosity on deposits and financial savings,” the discover learn.
Moniepoint additionally distanced itself from duty for the brand new costs, saying the deductions weren’t a worth enhance by the corporate.
“This isn’t a worth enhance by Moniepoint. Moniepoint is required to gather and remit VAT to the Nigerian Income Service (NRS).
“The NRS has communicated a deadline for nineteenth January 2026 for all {financial} establishments — business banks, microfinance banks and digital cash switch operators — to start out amassing and remitting VAT. VAT applies solely to banking or service charges, not curiosity,” it stated.
Prospects had been additionally knowledgeable that the deductions can be clearly itemised, as “VAT cost will seem individually in your transaction experiences and statements”.
The brand new VAT enforcement is anticipated to have an effect on hundreds of thousands of Nigerians who rely each day on cellular banking platforms and USSD companies for {financial} transactions.