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Nigeria to Start 7.5% VAT on Digital Banking Services January 19, 2026
Nigeria will begin charging a 7.5 percent Value Added Tax VAT on selected digital banking services from January 19, 2026, following a directive from tax authorities.
The VAT will apply to mobile transfers, USSD banking transactions, and some card service fees. Banks and payment companies must collect the tax and remit it to the Nigerian Revenue Service.
Services Affected by the VAT
Only service charges will attract the new tax. These include:
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Mobile app transfers
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USSD transactions
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Selected card related fees
Savings and deposit interest remain exempt, meaning customers will not pay VAT on money saved or interest earned.
Moniepoint Explains the Change
Payment platform Moniepoint informed customers that the VAT is a government directive, not a company decision. The firm confirmed it has not increased its service fees.
Other banks, microfinance institutions, and payment service providers will also apply the same rule.
What Customers Should Know
Customers will see the VAT clearly listed in their transaction receipts and account statements. The policy will affect millions of Nigerians who use digital banking services every day.
The move reflects the government’s effort to expand tax collection in Nigeria’s growing digital finance sector.
