Tax: FG Mandates 7.5% VAT on Mobile Transfers and USSD From Jan 19

By Samuel Solomon

FG Announces Implementation of 7.5% VAT on Selected Electronic Banking Services From January 19

The Federal Government has announced that a 7.5% Value Added Tax (VAT) will be applied to selected electronic banking services, including mobile bank transfers and USSD transactions, effective from January 19, 2026.

This implementation follows a regulatory directive from the tax authorities mandating financial institutions to begin VAT collection and remittance on applicable electronic banking charges.

In a notice issued to customers, Moniepoint informed users of the upcoming change, stating that financial institutions are required to collect and remit the 7.5% VAT to the Nigerian Revenue Service (NRS).

The notice reads in part: “From Monday, 19 January 2026, we are required to collect a 7.5% VAT, to be remitted to the Nigerian Revenue Service (formerly known as the Federal Inland Revenue Service).”

The directive is part of ongoing efforts to strengthen tax compliance and enhance government revenue through the digital financial services sector.

Members of the public are advised to take note of the commencement date and make necessary adjustments in planning their electronic transactions.