Nigerian banks will begin collecting a 7.5% value-added tax (VAT) on a range of banking services, including mobile banking fees and POS transaction fees, starting January 19, 2026, following a government-endorsed regulatory directive.
In a notice to customers, Moniepoint Microfinance Bank said the tax applies to electronic banking charges such as USSD transfers, POS activation fees, card issuance fees, and subscription services like Moniebook. Loan processing and documentation fees are also subject to the VAT, the bank added.
“VAT will apply to certain banking services… to be remitted to the Nigerian Revenue Service (NRS),” Moniepoint said.
The bank emphasized that the charge does not increase the amount transferred or withdrawn and clarified that interest on loans or deposits is not affected. The NRS (formerly Federal Inland Revenue Service) set the compliance deadline for all financial institutions, including commercial banks, microfinance banks, and electronic money transfer operators, to begin collecting the VAT.
The regulatory move aims to formalize the collection of taxes on digital financial services in Nigeria. The proceeds will be remitted directly to the Nigerian Revenue Service. Banks are required to list the VAT separately on transaction statements, ensuring transparency for customers.
Financial analysts say the policy underscores a broader trend of increasing digital financial regulation in Africa’s largest economy. Everyday consumers, however, may feel the immediate impact on small, frequent transactions, especially as mobile money becomes the dominant mode of payment.
