The Federal Government has directed banks and financial technology (fintech) companies to begin collecting and remitting 7.5 per cent Value Added Tax (VAT) on selected electronic banking services, effective Monday, January 19, 2026.
The directive was communicated to customers through email notices issued by payment platforms, including Moniepoint, on Wednesday.
Services Affected
According to the notice, VAT will apply strictly to banking service charges, not the amount being transferred.
Services affected include:
Mobile banking transfer fees
USSD transaction charges
Card issuance fees
For example, where a bank charges ₦100 as a transfer fee, ₦7.50 VAT will be added to the service charge alone.
What the Platforms Said
In its notice to customers, Moniepoint 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 (NRS), formerly known as the Federal Inland Revenue Service.”
The fintech company emphasised that the charge does not represent a price increase, but a statutory tax obligation.
“Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service,” the company added.
Other banks and fintech operators are expected to issue similar notifications in the coming days.
Services Exempted
Certain banking services will remain VAT-exempt, including:
Interest earned on savings and deposit accounts
Customers will therefore not pay VAT on returns from their savings or fixed deposits.
Compliance Deadline
The Nigerian Revenue Service (NRS) has directed all:
Commercial banks
Microfinance banks
Electronic money operators
to comply fully with the VAT collection and remittance requirement.
The agency is enforcing uniform VAT compliance across digital financial platforms as part of broader efforts to strengthen revenue generation in Nigeria’s expanding digital economy.
VAT Breakdown to Be Shown
Customers have been assured that VAT deductions will be clearly itemised, with the tax displayed separately on transaction statements and reports.
Stamp Duty Reminder
The development follows recent notifications by banks on the enforcement of the ₦50 stamp duty on electronic transfers of ₦10,000 and above, in line with provisions of the new Tax Act.
The charge, previously referred to as the Electronic Money Transfer Levy (EMTL), has now been formally reclassified as stamp duty and applies as a one-off fee on qualifying transactions.
