By Sabiu Abdullahi
Nigerian bank and fintech users are bracing for a sudden increase in everyday banking costs as the government mandates a 7.5% Value Added Tax (VAT) on certain financial services starting Monday, 19 January 2026.
In a notice to its customers, Moniepoint, one of the country’s leading fintech platforms, revealed that the tax will apply to services such as POS transactions, mobile banking transfers, USSD fees, card issuance, loan processing fees, and Moniebook subscriptions.
The company reassured customers that the change is not a price hike by Moniepoint, but a government requirement to remit VAT to the Nigerian Revenue Service (NRS), formerly known as the Federal Inland Revenue Service.
“The NRS has communicated a deadline of 19th January for all financial institutions – including commercial banks, microfinance banks, and electronic money operators – to start collecting and remitting VAT,” Moniepoint said in its announcement.
Services such as interest on loans and deposits, however, will remain exempt from the tax.
For the average Nigerian, this seemingly small tax could add up. A ₦50 transfer fee, for example, will now attract an additional ₦3.75, which will go straight to the government rather than the bank.
Analysts say the VAT could stir public frustration as Nigerians grapple with rising costs, especially for digital financial services which have become a lifeline for many in the country.
Financial experts warn that the new rule is just the beginning, urging citizens to review all banking charges carefully to avoid being caught off guard by the added government levy.