Federal Government has directed all banks and fintech companies to begin collecting and remitting a 7.5 per cent Value Added Tax (VAT) on specific electronic banking services, effective Monday, January 19, 2026.
Tax
Payment platforms issued email notices to customers on Wednesday, with Moniepoint sharing details that the VAT applies to electronic banking charges such as mobile money transfers, USSD transaction fees, and card issuance fees. For instance, a N100 transfer fee will attract N7.50 VAT, charged solely on the service fee and not the principal amount transferred.
The Nigeria Revenue Service (NRS), formerly the Federal Inland Revenue Service (FIRS), mandated commercial banks, microfinance banks, and electronic money operators to comply by the deadline. Moniepoint clarified the levy as a statutory obligation rather than a price hike, with VAT to appear separately on transaction statements.
Services like interest earned on deposits and savings remain exempt from the tax. Other operators are expected to notify customers soon, standardising collection across Nigeria’s digital economy to boost revenue.
This follows December notices from commercial banks about reclassifying the N50 Electronic Money Transfer Levy (EMTL) as stamp duty on transfers of N10,000 and above, now a one-off fee under the new Tax Act. The measures align with ongoing tax reforms amid uncertainty over final laws, as noted by Taiwo Oyedele last week.
Customers can expect clear itemisation of VAT on statements, supporting government efforts to enforce uniform rules on digital transactions.
