The Federal Government of Nigeria has issued directives on the collection and remittance of Value Added Tax, VAT. It has directed banks and fintechs to receive and remit 7.5% tax on some select electronic services.
FG Orders Banks, Fintechs to Remit VAT on Service Fees
The VAT which will be effective Monday, January 19, 2026, will apply to banking services including mobile money transfers, USSD transaction fees, and card issuance fees.
In lieu of this, a leading Fintech, MoniePoint has issued a mail to inform their customers and other banks are expected to follow suit.
The mail reads,
“From Monday, January 19, 2026, we are required to collect a 7.5 per cent VAT, to be remitted to the Nigerian Revenue Service (formerly known as the Federal Inland Revenue Service).
“VAT will apply to certain banking services that include electronic banking charges such as mobile banking fees (transfers), USSD transaction fees, and card issuance fees”.
Also the Federal Inland Revenue Service, has issued a timeline for other financial institutions to comply with the collection and remittance directive issued by the Federal Government.
Following the introduction of the new Tax Act, most commercial banks have commenced the deduction of N50 stamp duty on electronic transfers of N10,000 and above.