BANK CUSTOMERS TO PAY 7.5% VAT ON MOBILE, USSD TRANSACTIONS. (PHOTO).

 Bank customers to pay 7.5% VAT on mobile, USSD transactions

Nigerians should brace up for tougher times as a new regime of 7.5 per cent Value Added Tax (VAT) on selected banking services, including mobile bank transfers and USSD transactions, takes effect from January 19, 2026.

According to a notice sent to customers on Wednesday afternoon by Moniepoint, the development is tied to a directive from the Nigerian Revenue Service(NRS), mandating financial institutions to begin VAT collection and remittance on certain electronic banking services

The notice reads in part, “We would like to inform you of an upcoming government-endorsed regulatory change regarding Value Added Tax (VAT),” the notice stated.

It added, “From Monday, 19 January 2026, we are required to collect a 7.5 per cent VAT, to be remitted to the Nigerian Revenue Service (NRS) (formerly known as the Federal Inland Revenue Service).”

Recall that bank customers had, on January 1, 2026, expressed growing frustration following the announcement from banks that the implementation of a new tax framework had shifted the burden of electronic transfer levies to senders, a move that many fear will further raise the cost of everyday digital transactions in Africa’s largest economy.

Under the Nigerian Tax Act, which took effect on January 1, 2026, a N50 electronic money transfer levy on transactions of N10,000 and above will now be deducted from the sender’s account rather than the recipient’s.

Banks have begun notifying customers ahead of the rollout, framing the change as a regulatory requirement rather than a new fee.