Bank Transfers, USSD to Attract 7.5% VAT from January 19

Nigerians will begin paying a 7.5 per cent Value Added Tax (VAT) on selected banking services, including mobile transfers and USSD transactions, effective January 19, 2026, following a new government-backed regulatory directive.

The development was disclosed in a customer notice sent out on Wednesday by Moniepoint and obtained by MO MEDIA Headlines.

The notice informed users that financial institutions have been directed by tax authorities to commence the collection and remittance of VAT on specific electronic banking charges.

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

It added that from Monday, January 19, 2026, banks and fintechs are required to collect a 7.5 per cent VAT and remit it to the Nigerian Revenue Service (NRS), formerly known as the Federal Inland Revenue Service (FIRS).