FG to Charge 7.5% VAT on Mobile Transfers and USSD from January 19

From January 19, 2026, Nigerians will start paying a 7.5% Value Added Tax (VAT) on certain banking services, including mobile transfers, USSD transactions, and card issuance fees, following a directive from the Federal Government.

All financial institutions—commercial banks, microfinance banks, and electronic money operators—are required to collect and remit the VAT as part of efforts to improve tax compliance and increase government revenue.

Fintech companies, like Moniepoint, clarified that this is not a price hike but a mandatory government regulation. The tax applies only to selected service fees; other banking activities, such as interest on savings and deposits, are exempt.

Customers will see VAT charges clearly shown on their transaction statements to ensure transparency.

The new rule will affect millions of Nigerians who use mobile banking and digital payment platforms for daily transactions. Banks are preparing to guide customers on how the deductions will be applied.