Banks will begin deducting 7.5 percent value-added tax (VAT) on banking services from January 19, 2026.
The services include point of sale (POS) transaction fees, mobile banking transfer fees, USSD transaction fees, POS activation fee, card issuance fee and subscription.
An email to customers from Moniepoint Microfinance Bank, explained that the charge stems from a government-endorsed regulatory change.
According to the bank, the proceeds of the charge will be remitted to the Nigerian Revenue Service (NRS).
“We would like to inform you of an upcoming government-endorsed regulatory change regarding Value Added Tax (VAT).
“From Monday, 19 January 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,” it stated.
According to the bank, the charge also applies to other fees, such as loan processing and documentation fees.
“Services that DO NOT attract VAT include: interest on loans and advances, and interest on deposits and savings.
“Please note: This is not a price increase by Moniepoint. Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service (NRS).
“The NRS has communicated a deadline of 19th January for all financial institutions (commercial banks, microfinance banks and electronic money transfer operators) to start collecting and remitting VAT,” Moniepoint stated.
The bank clarified that VAT applies only to banking or service fees and not to interest, adding that the charge will be listed separately on transaction reports and statements.
The new tax laws retain the VAT rate at 7.5 percent.
