Banks across Nigeria will begin deducting a 7.5 per cent value-added tax (VAT) on selected banking services from January 19, 2026, following a government-endorsed regulatory directive.
Moniepoint Microfinance Bank disclosed the development in an email sent to customers, explaining that the VAT will apply to specific service-related charges rather than the actual amounts transferred or withdrawn.
According to the bank, the VAT is charged on applicable fees, including the N50 stamp duty, and will be remitted to the Nigerian Revenue Service (NRS), formerly known as the Federal Inland Revenue Service.
Moniepoint said the affected services include electronic banking charges such as point-of-sale (POS) transaction fees, mobile banking transfer fees, USSD transaction fees, POS activation fees, card issuance fees, and Moniebook subscription charges. The tax will also apply to loan processing and documentation fees.
The bank clarified that services exempt from VAT include interest on loans and advances, as well as interest earned on deposits and savings.
“This is not a price increase by Moniepoint,” the bank stated, noting that financial institutions are required to collect and remit the tax on behalf of the government. It added that the NRS has set January 19 as the deadline for all commercial banks, microfinance banks, and electronic money transfer operators to commence VAT collection.
Moniepoint further explained that VAT will be applied strictly to service fees and will be clearly itemised on transaction receipts and account statements.
The development comes as Nigeria’s new tax laws retain the VAT rate at 7.5 per cent.