The Federal Government has ordered all banks and fintechs to collect and remit 7.5 percent value-added tax (VAT) on electronic banking services.
According to an email notice issued by banks and fintechs and sent to their customers, the directive will take effect from Monday, January 19, 2026.
Information revealed that the VAT will apply to electronic banking charges, including but not limited to mobile money transfers, USSD transaction fees, and card issuance fees.
Moniepoint cited an example of how the deduction and remittance will be made, saying, “For example, if a bank charges N100 to make a transfer, the 7.5 per cent VAT will be applied to that service fee, not the money being sent.
“From Monday, January 19, 2026, we are required to collect a 7.5 per cent VAT, to be remitted to the Nigerian Revenue Service (formerly known as the 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 fees,” the email read.
However, the services that will remain exempt are interest earned on deposits and savings, meaning customers will not pay tax on the returns from their accounts.
According to Moniepoint, this is not a price increase but a statutory obligation, pointing out, “Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service.”
