Several Nigerian banks, including Moniepoint, have begun informing customers that a 7.5 percent Value Added Tax will now apply to bank transfers and Unstructured Supplementary Service Data transactions, following a new regulatory directive.
Customer notices circulated on Wednesday indicated that the VAT charge will take effect from January 19, 2026, in line with instructions from the Nigeria Revenue Service, formerly known as the Federal Inland Revenue Service. The banks explained that the adjustment is part of a government-approved change to how VAT is collected on certain financial services.
In the notification sent to customers, the banks stated that the 7.5 percent VAT would be applied to eligible transactions and remitted directly to the tax authority. They also clarified that the new charge is separate from existing deductions such as the N50 stamp duty and other transaction-related fees that customers already pay.
While the banks have begun notifying customers, the Nigeria Revenue Service has yet to release an official public statement specifically addressing the implementation of VAT on banking transactions.
The development comes amid ongoing public concerns about increased charges on digital financial services, especially as bank transfers and USSD remain essential payment channels for individuals and small businesses across the country. For many MSMEs, particularly those operating with thin margins, additional transaction costs could further raise the cost of doing business and affect daily cash flow.
Earlier in the week, the tax authority had moved to calm public anxiety by dismissing claims that the federal government intended to impose direct taxes or automatic debits on individual bank accounts, stressing that no such policy was in place.
