Nigerians will begin paying a 7.5 per cent Value Added Tax on selected banking services from January 19, 2026, following a new government-backed regulatory directive affecting the financial sector.

The new tax regime will apply to certain electronic banking transactions, including mobile bank transfers and Unstructured Supplementary Service Data transactions used widely across the country.

The PUNCH reported that according to a customer notice issued on Wednesday afternoon, Moniepoint, informed users of the planned implementation of the VAT on specific banking charges.

According to the notice, the development follows a directive from tax authorities mandating financial institutions to commence the collection and remittance of VAT on eligible services.

“We would like to inform you of an upcoming government-endorsed regulatory change regarding Value Added Tax (VAT),” the notice stated.

The company further explained that the directive takes effect from a specific date in January 2026 and that compliance is mandatory.

“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 notice added.

Moniepoint disclosed that the VAT would apply to “certain banking services,” specifying that the affected services include “electronic banking charges such as mobile banking fees (transfers), USSD transaction fees and card issuance fee.”

The firm, however, clarified that the tax would not be imposed on all banking-related transactions.

According to the notice, “services that DO NOT attract VAT include: interest on deposits and savings.”

Moniepoint also distanced itself from the introduction of the new charges, stressing that the deductions were not a result of its internal pricing decisions.

“This is not a price increase by Moniepoint,” the company stated.

The financial technology firm emphasised that its role was limited to compliance with government regulations.

“Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service (NRS),” the notice read.

The company further revealed that the tax authority had issued a clear deadline for full compliance across the financial sector.

“The NRS has communicated a deadline for 19th January 2026 for all financial institutions (commercial banks, microfinance banks and electronic money transfer operators) to start collecting and remitting VAT,” the statement said.

Moniepoint also assured customers that the VAT would only apply to service-related charges and not to earnings or savings.

“VAT applies only to banking or service fees, not interest,” the firm explained.

Customers were also informed that transparency would be maintained in the deductions, as the tax would be clearly displayed.

“VAT charge will appear separately on your transaction reports and statements,” the notice stated.

The new VAT enforcement is expected to affect millions of Nigerians who rely daily on mobile banking platforms and USSD services to carry out financial transactions across the country.