By Naomi Jeremiah
The Federal Government has directed all banks and financial technology companies to begin collecting and remitting a 7.5 per cent value-added tax (VAT) on selected electronic banking services from Monday, January 19, 2026.
The directive was communicated to customers through email notices issued by payment platforms, including Moniepoint, on Wednesday.
According to the notice, the VAT will apply to electronic banking charges such as mobile money transfer fees, USSD transaction fees, and card issuance fees. The tax will be charged on the service fee itself, not on the amount being transferred.
For instance, where a bank charges N100 as a transfer fee, a 7.5 per cent VAT will be added to that N100, while the transferred funds remain untouched.
Moniepoint stated that it is required by law to collect and remit the VAT to the Nigerian Revenue Service (NRS), formerly known as the Federal Inland Revenue Service (FIRS).
“From Monday, January 19, 2026, we are required to collect a 7.5 per cent VAT, to be remitted to the Nigerian Revenue Service,” the company said.
The platform clarified that the move does not represent a price increase but a statutory tax obligation mandated by the government. Other banks and fintech operators are expected to issue similar notices to customers in the coming days.
Services exempt from the VAT include interest earned on savings and deposits, meaning customers will not be taxed on returns from their accounts. Customers have also been assured that the VAT will be clearly itemised on transaction statements.
The enforcement forms part of the government’s broader effort to standardise VAT collection across digital financial services and expand revenue generation within Nigeria’s fast-growing digital economy.
Meanwhile, banks had earlier informed customers of the enforcement of a N50 stamp duty on electronic transfers of N10,000 and above, following the implementation of provisions in the new Tax Act. The charge, previously referred to as the Electronic Money Transfer Levy (EMTL), has now been formally reclassified as stamp duty.
Culled from: Vanguard News