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Starting Monday, January 19, 2026, Nigerians using digital banking platforms will see a new 7.5 per cent value-added tax (VAT) applied to certain electronic banking services, the Federal Government has confirmed.
The levy will cover fees such as mobile money transfers, USSD transactions, and card issuance, according to an advisory shared by Moniepoint with its customers on Wednesday.
For instance, a N100 transfer fee will now attract an additional N7.50 VAT.
“From January 19, 2026, we are mandated to collect a 7.5 per cent VAT on specific electronic banking services and remit it directly to the Nigerian Revenue Service,” Moniepoint said in the notice.
“This is a legal requirement, not a price increase.”
Other banks and fintech operators are expected to issue similar notices in the coming days.
Authorities clarified that returns from deposits and savings accounts will remain VAT-exempt, ensuring customers are not taxed on interest earned.
The Nigerian Revenue Service (NRS), previously known as the Federal Inland Revenue Service, has emphasized strict compliance across all financial institutions, including commercial banks, microfinance banks, and electronic money operators.
“This measure is part of a broader initiative to harmonize VAT collection on digital financial services and strengthen government revenue streams amid the rapid growth of Nigeria’s digital economy,” a government spokesperson said.
To ensure transparency, all affected transactions will display the VAT charge separately on statements and transaction reports.
The move follows last December’s announcement that a N50 stamp duty would apply to electronic transfers of N10,000 and above, following provisions of the new Tax Act.
Previously known as the EMTL, this fee has been reclassified as stamp duty and is applied as a one-off charge on qualifying transfers.
Industry observers say the new VAT collection rules will standardize digital banking charges nationwide while providing the government with additional funds to support economic growth initiatives.