Banks and other financial institutions in Nigeria will commence the deduction of a 7.5 per cent Value Added Tax (VAT) on selected banking service charges, including mobile transfer and point-of-sale (PoS) transaction fees, from January 19, 2026.
The development was disclosed by Moniepoint Microfinance Bank in a notice to its customers, citing a government-endorsed regulatory directive. According to the bank, the VAT will be charged on applicable service fees — including the ₦50 stamp duty — but will not affect the actual value of customers’ transactions or cash withdrawals.
In the communication, Moniepoint explained that the tax would be collected on behalf of the Nigerian Revenue Service (NRS), formerly known as the Federal Inland Revenue Service (FIRS).
“We would like to inform you of an upcoming government-endorsed regulatory change regarding Value Added Tax (VAT),” the bank stated. “From Monday, January 19, 2026, we are required to collect a 7.5 per cent VAT, to be remitted to the Nigerian Revenue Service (NRS).”
The bank listed electronic banking charges subject to VAT to include PoS transaction fees, mobile banking transfer fees, USSD transaction charges, PoS activation fees, card issuance fees, and Moniebook subscription fees. VAT will also apply to certain administrative charges such as loan processing and documentation fees.
However, Moniepoint clarified that some services remain exempt from VAT. These include interest on loans and advances, as well as interest earned on savings and deposits.
“This is not a price increase by Moniepoint,” the bank emphasised. “We are mandated to collect and remit VAT to the Nigerian Revenue Service. The NRS has communicated a January 19 deadline for all financial institutions — including commercial banks, microfinance banks and electronic money transfer operators — to begin VAT collection and remittance.”
The bank further noted that VAT would be applied strictly to service fees and not to the principal transaction amounts, adding that the tax would be clearly itemised on customers’ transaction statements.
Nigeria’s VAT rate remains 7.5 per cent under existing tax laws, and the directive is expected to affect customers across the banking and digital payment ecosystem nationwide.