Banks in Nigeria will begin deducting a 7.5 per cent Value Added Tax (VAT) on some banking services, including Point of Sale (POS) and USSD transactions, from January 19, 2026.
Moniepoint Microfinance Bank disclosed this in an email sent to its customers, explaining that the move follows a government-endorsed regulatory change.
According to the bank, the VAT is charged on the N50 stamp duty and does not affect the actual amount being transferred or withdrawn. The proceeds, it said, will be remitted to the Nigerian Revenue Service (NRS).
“We would like to inform you of an upcoming government-endorsed regulatory change regarding Value Added Tax (VAT),” Moniepoint said.
“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).
“VAT will apply to certain banking services that include: electronic banking charges such as POS transaction fees, mobile banking fees (transfers), USSD transaction fees, POS activation fee, card issuance fee and Moniebook subscription.”
The bank added that the VAT also applies to other charges, including loan processing and documentation fees.
“Services that DO NOT attract VAT include: interest on loans and advances, and interest on deposits and savings,” Moniepoint stated.
Clarifying further, the bank stressed that the deduction is not a price increase by the institution.
“Please note: This is not a price increase by Moniepoint. Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service (NRS).
“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.”
Moniepoint also explained that VAT applies strictly to banking or service fees and not to interest, adding that the charge will be listed separately on customers’ transaction reports and statements.
The new tax laws retain the VAT rate at 7.5 per cent.
