Government-backed directive prompts banks and fintechs to charge customers for electronic transactionsStarting January 19, 2026, Nigerians making mobile banking transfers or using USSD payment services will incur a 7.5% Value Added Tax (VAT) on each transaction, following a government-supported directive. The announcement was shared with customers by Moniepoint, one of the country’s leading digital banking platforms, which outlined how the charges will be applied to electronic payment services.
The new measure aims to broaden Nigeria’s tax base by including digital financial services, a sector that has seen significant growth in recent years. While authorities describe the move as a step toward formalizing the fintech ecosystem, analysts and consumers have expressed concerns over the potential financial burden on everyday banking activities.
Banks and payment service providers are expected to implement the VAT collection automatically, meaning customers will see the additional charge applied directly to their transactions. Financial experts have advised Nigerians to review their payment patterns and explore alternatives to minimize the impact of the new tax.
The government has stated that revenue generated from the VAT will support national development projects, including infrastructure, healthcare, and digital innovation initiatives, as part of broader efforts to modernize the economy.
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