Nigerians To Pay 7.5% VAT On Mobile Transfers, USSD Transactions From January 19
Starting January 19, 2026, Nigerians will begin paying a 7.5 percent Value Added Tax (VAT) on selected banking services, including mobile transfers, USSD transactions, and card issuance fees, following a government-mandated directive. Moniepoint informed its customers on Wednesday that the new VAT charges would take effect on certain electronic banking services, in line with instructions from the Nigerian Revenue Service (NRS), formerly the Federal Inland Revenue Service. The notice read: “From Monday, 19 January 2026, we are required to collect a 7.5% VAT, to be remitted to the Nigerian Revenue Service (NRS).” Moniepoint clarified that not all transactions would attract the tax, noting that “interest on deposits and savings” would remain exempt. The company also emphasized that this is not a price increase, but a regulatory obligation. “This is not a price increase by Moniepoint. Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service. VAT applies only to banking or service fees, not interest,” the notice said. Customers were assured that all VAT deductions would be clearly itemized on transaction reports and statements. The new VAT policy is set to affect millions of Nigerians who use mobile banking and USSD services for daily financial transactions.