Customers of Moniepoint and several other Nigerian banks will begin paying a 7.5 percent Value Added Tax on electronic transfers and Unstructured Supplementary Service Data transactions from January 19, 2026, following a regulatory directive on VAT remittance.
The development was communicated to customers through in-app notifications and text messages obtained by our correspondent on Wednesday. The banks explained that the new charge is in line with a government-approved adjustment to VAT collection on certain financial services.
In the notice, Moniepoint stated that it had been directed to apply the VAT and remit the proceeds to the Nigeria Revenue Service, formerly known as the Federal Inland Revenue Service.
“From Monday, January 19, 2026, a 7.5 percent VAT will be applied to eligible transfers and USSD transactions and remitted to the Nigeria Revenue Service in compliance with regulatory guidelines,” the message read.
The bank clarified that the VAT is distinct from other statutory charges already borne by customers, including the N50 stamp duty on qualifying transactions, as well as existing transfer and USSD service fees.
Industry analysts say the move could further increase the cost of digital banking for millions of Nigerians who rely heavily on mobile transfers and USSD platforms for daily transactions, particularly those without access to smartphones or internet banking.
As of the time of filing this report, the Nigeria Revenue Service had yet to issue an official public statement detailing the scope and implementation framework of the VAT on banking transactions.
However, the Executive Chairman of the NRS, Dr Zacch Adedeji, had earlier dismissed claims that the Federal Government planned to introduce a direct tax or automatic deductions from individual bank accounts, assuring Nigerians that no such policy was under consideration.
