The Federal Government has mandated all financial institutions and fintechs to collect and remit a 7.5% Value-Added Tax (VAT) on electronic banking service charges starting Monday, January 19, 2026.
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The tax will apply to service fees for mobile money transfers, USSD transactions, and card issuance, rather than the principal amount being sent.
The Nigeria Revenue Service (NRS)—formerly the FIRS—clarified that interest earned on deposits and savings remains exempt from this tax.
Major platforms like Moniepoint have already begun notifying customers of the change to ensure full compliance by the January deadline.
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