NIGERIANS TO PAY 7.5% VAT ON MOBILE BANK TRANSFER ,USSD TRANSACTION FROM JANUARY 19,2026.

Here’s a clear breakdown of what’s happening and what it means for you

.1. What exactly did Moniepoint (and others) tell customers?Moniepoint sent an email to customers explaining a government‑endorsed regulatory change on VAT. Key points from that notice, as reported by multiple outlets:* From Monday, 19 January 2026,

Moniepoint is required to collect 7.5% VAT and remit it to the Nigerian Revenue Service (NRS), formerly FIRS. (nigeriadailypost.com.ng telegraph.ng)* The VAT applies to “certain banking services”, especially:Mobile banking fees (transfer charges)USSD transaction feesCard issuance fees (like when you’re issued a new debit card)(nigeriadailypost.com.ng theatlanticbell.com)

*Very important: the 7.5% VAT is on the service fee only, not on the amount you are sending.Example used in multiple reports: if a transfer fee is ₦100, VAT is calculated on that ₦100 only, not on the money you’re transferring. (thestar.ng primebusiness.africa)*

Moniepoint stressed that:This is not their price increase; they’re just following a government directive.They are mandated to collect and remit the VAT to NRS.(nigeriadailypost.com.ng saharareporters.com)* The email also said that the VAT charge will appear separately on your transaction reports/statements so you can clearly see it. (nigeriadailypost.com.ng trustradio.com.ng)Other banks and fintechs are expected to issue similar notices, because the directive is sector‑wide for “banks, microfinance banks and electronic money transfer operators.”

(insightsng.com telegraph.ng)

2. How your charges will be calculated (with simple examples)Formula:* VAT = 7.5% × (service fee)* Total you pay = service fee + VATLet’s use numbers you’re likely to see.

Example A – Mobile app transfer fee of ₦25* Service (transfer) fee: ₦25* VAT (7.5% of ₦25) = ₦25 × 0.075 = ₦1.875, which banks will typically round to ₦1.88.* Total fee you pay = ₦25 + ₦1.88 = ₦26.88.This exact example (₦25 fee → ₦26.88 total) is already being used in news explanations. (abujaaffairs.com infohubfacts.com)Example B – Mobile app transfer fee of ₦100* Service fee: ₦100* VAT: ₦100 × 0.075 = ₦7.50* Total fee = ₦100 + ₦7.50 = ₦107.50This ₦100 → ₦7.50 VAT example also appears in explanations from several outlets. (thestar.ng primebusiness.africa)Example C – USSD session fee of ₦20Let’s say using a USSD code (*737#, *919#, etc.) costs ₦20 per session:* Service fee: ₦20* VAT: ₦20 × 0.075 = ₦1.50* Total fee = ₦20 + ₦1.50 = ₦21.50This exact ₦20 → ₦21.50 illustration appears in some explainer articles on the new VAT. (infohubfacts.com)Example D – Card issuance fee of ₦1,000*

Card issuance fee: ₦1,000* VAT: ₦1,000 × 0.075 = ₦75* Total = ₦1,000 + ₦75 = ₦1,075This follows the same rule: VAT only on the bank’s fee, not on any money you later spend with the card. (abujaaffairs.com insightsng.com)

3. What is not affected?From Moniepoint’s notice and other reports:* Interest on deposits and savings does NOT attract this VAT. (nigeriadailypost.com.ng theatlanticbell.com)* The amount you send in a transfer is not taxed by this 7.5% rule; only the fee charged by the bank/fintech is. (telegraph.ng primebusiness.africa)

* Non–fee‑based transactions (where your bank doesn’t charge a service fee) are generally outside this VAT scope. (insightsng.com)So: it doesn’t reduce your balance beyond the extra VAT on any service charges.

4. Practical tips to reduce the impactA few ways you can adapt (within the rules):

a). Know your bank’s fee structure.Check your bank or fintech’s schedule of charges in their app, website, or SMS/email notices so you know exactly which services attract fees (and therefore VAT).

b). Reduce the number of tiny transfers.Because the VAT is per fee, many very small, frequent transfers will accumulate more VAT overall than fewer, larger transfers (where that makes sense and is safe for you).

C). Compare channels (app vs USSD vs POS).If one channel has lower service fees, its VAT will automatically be lower as well, since VAT is a fixed 7.5% on whatever fee you’re charged. (infohubfacts.com primebusiness.afri