Starting January 19, 2026, banks in Nigeria will begin deducting 7.5 percent value-added tax (VAT) on certain banking services, including mobile banking transfers, point-of-sale (POS) transactions, USSD transfers, card issuance, and POS activation fees.
According to THECABLE, in an email to customers, Moniepoint Microfinance Bank said the charge is part of a government-endorsed regulatory directive, and proceeds from the VAT will be remitted to the Nigerian Revenue Service (NRS), formerly known as the Federal Inland Revenue Service.
“From Monday, 19 January 2026, we are required to collect a 7.5% VAT, to be remitted to the Nigerian Revenue Service (NRS),” the bank said.
“VAT will apply to electronic banking charges, POS transaction fees, mobile banking fees, USSD transaction fees, POS activation fees, card issuance fees, and Moniebook subscription.”
The VAT will also apply to loan processing and documentation fees, but will not affect interest on deposits, loans, or savings accounts. The bank emphasized that this is not a price increase, but a compliance requirement.
“Please note: This is not a price increase by Moniepoint. Moniepoint is required to collect and remit VAT to the NRS,” the bank added.
“All financial institutions—including commercial banks, microfinance banks, and electronic money transfer operators—must begin collecting and remitting VAT by January 19.”
According to Moniepoint, the VAT will be calculated on the N50 stamp duty and will not affect the actual amount transferred or withdrawn. The tax will also appear separately on transaction reports and statements, ensuring transparency for customers.
The VAT rate remains 7.5 percent, in line with Nigeria’s existing tax laws.