Daniel Adaji
Nigerians will from Monday, January 19, 2026, pay a 7.5 per cent Value Added Tax (VAT) on selected banking service charges, following a government-backed regulatory directive to financial institutions nationwide.
The development was disclosed in a customer notice issued on Wednesday by Moniepoint, which clarified that the policy applies across the banking industry and is not limited to one institution. According to the notice, “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).”
The VAT will apply to a wide range of banking and financial services frequently used by Nigerians. Moniepoint stated that the tax covers “electronic banking charges such as POS transaction fees, mobile banking fees (transfers), USSD transaction fees, POS activation fee, card issuance fee and Moniebook subscription,” adding that it also applies to “loan processing and documentation fees.”
The company, however, noted that certain transactions remain exempt. According to the notice, “Services that DO NOT attract VAT include: interest on loans and advances, and interest on deposits and savings.”
Addressing concerns about possible increased deductions from customer accounts, Moniepoint emphasised that the VAT is mandated by law and not a unilateral decision by banks.
“This is not a price increase by Moniepoint,” the company said, adding that “Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service (NRS).”
The notice further disclosed that the tax authority has fixed a uniform start date for compliance across the financial sector. “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,” it stated.
Customers were also assured of transparency in the deductions. “VAT charge will appear separately on your transaction reports and statements,” Moniepoint said, while stressing that “VAT applies only to banking or service fees, not interest.”
The directive is anchored in Nigeria’s existing VAT framework, which pegs the tax rate at 7.5 per cent following amendments to the VAT Act under recent tax reforms. Although VAT has long applied to goods and many services, its application within the financial services sector has undergone regulatory clarification in recent years.
