Nigerians Brace for New Charges as 7.5% VAT on Bank Transfers Begins January 19, 2026
Nigerians will soon begin paying a 7.5% VAT on bank transfers following a new government-backed directive that introduces additional charges on selected banking services. The policy will take effect from January 19, 2026, and will apply to some electronic banking transactions across financial institutions in the country.
The announcement of the 7.5% VAT on bank transfers was made known through a notice sent to customers by Moniepoint. The fintech company informed users that tax authorities have mandated banks and financial service providers to begin the collection and remittance of the tax.
Part of the notice read: “We would like to inform you of an upcoming government-endorsed regulatory change regarding Value Added Tax (VAT). “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).”
Moniepoint explained that the 7.5% VAT on bank transfers will apply to certain banking services, including mobile banking transfer fees, USSD transaction fees, and card issuance charges. This means customers carrying out digital transactions may notice slight increases in service charges from next year.
However, the company clarified that not all banking services will attract the new VAT. “Services that DO NOT attract VAT include interest on deposits and savings,” the notice read, assuring customers that savings earnings will not be affected by the new policy.
Moniepoint also stressed that the deductions are not an increase in its service prices but a statutory obligation imposed by the government. According to the company, all commercial banks, microfinance banks, and electronic money transfer operators have been directed to implement the 7.5% VAT on bank transfers from the stated date.
Customers were further informed that the VAT deductions will be clearly itemized on transaction statements, making it easier to identify the tax component on each charge. This development is part of the wider implementation of Nigeria’s new tax laws signed into law in June 2025.
The introduction of the 7.5% VAT on bank transfers has already sparked reactions among Nigerians who are concerned about the rising cost of digital banking. Many are now questioning how the new charges will affect their everyday transactions and overall financial planning.
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