The Federal Government has directed banks and fintechs to collect a 7.5% Value-Added Tax (VAT) on certain electronic banking services, effective January 19, 2026.
This includes charges on mobile money transfers, USSD transactions, and card issuance fees.
The VAT will be applied to the service fee, not the transferred amount.
For instance, if a bank charges N100 for a transfer, the 7.5% VAT will be added to that N100 fee.
Services exempt from VAT include interest earned on deposits and savings.
The Nigerian Revenue Service (NRS) has set a deadline for compliance, and banks will clearly itemize the VAT on transaction statements.
This move aims to standardize VAT collection on digital financial services and boost revenue.