Millions of Nigerians who rely on mobile banking, USSD codes, and electronic transfers are set for a new cost burden starting Monday, January 19, 2026.Leading fintech platform Moniepoint, along with several other Nigerian banks and financial institutions, has begun notifying customers of a mandatory 7.5% Value Added Tax (VAT) that will now apply to various electronic banking service fees including mobile transfers, USSD transactions, POS charges, card issuance, and more.Here are eye-catching visuals of the popular Moniepoint app and its widely used USSD interface, tools many Nigerians depend on daily for quick banking:
According to official customer notices from Moniepoint:“From Monday, January 19, 2026, we are required to collect a 7.5% VAT, to be remitted to the Nigerian Revenue Service (NRS) (formerly known as the Federal Inland Revenue Service).
VAT will apply to certain banking services that include: electronic banking charges such as POS transaction fees, mobile banking fees (transfers), USSD transaction fees, POS activation fee, card issuance fee and Moniebook subscription.”
Importantly, the 7.5% VAT is charged only on the bank's service fee not on the actual amount being transferred. For example:If a transfer attracts a ₦50 service charge, customers will now pay an additional ₦3.75 VAT (7.5% of ₦50), making the total deduction ₦53.75.
This is separate from other existing charges like the ₦50 stamp duty on qualifying transfers.
This change stems from a directive by the Nigerian Revenue Service (NRS), enforcing uniform VAT collection on financial service fees across commercial banks, microfinance institutions, and electronic money operators. It is described as a regulatory clarification and compliance measure, not a new tax rate increase (VAT remains at 7.5%).Here are iconic images of the Central Bank of Nigeria (CBN) headquarters in Abuja, the institution often linked to broader financial regulatory frameworks overseeing such policies:
While some clarifications (including from NRS sources) emphasize that the VAT is ultimately deducted from the institution's earnings in certain contexts and remitted to government, customer notices indicate the additional amount will appear on statements and receipts as a separate line item effectively increasing the cost of everyday digital transactions for users.This development comes amid Nigeria's expanding digital economy, where mobile and USSD banking remain lifelines for millions, especially in underserved areas.As the January 19 deadline approaches, questions swirl: Will this push more people toward cash or alternative channels? Or will it simply become another accepted cost in the fight for better tax compliance? Customers are advised to check their apps, statements, and official communications from their banks/fintechs for exact details on how the new VAT will appear in practice. The digital banking landscape just got a little more expensive starting next week.