Banks will begin deducting a 7.5 percent value-added tax (VAT) on banking services—including point-of-sale (POS) transaction fees and mobile transfer charges—from January 19.
In a notice to customers, Moniepoint Microfinance Bank said the deduction follows a government-approved regulatory directive. The VAT applies to service charges, including the ₦50 stamp duty, but does not affect the actual value of transactions or withdrawals. Moniepoint said all collected VAT would be remitted to the Nigerian Revenue Service (NRS).
“We would like to inform you of an upcoming government-endorsed regulatory change regarding Value Added Tax (VAT),” the bank said. “From Monday, 19 January 2026, we are required to collect a 7.5% VAT to be remitted to the Nigerian Revenue Service (NRS), formerly the Federal Inland Revenue Service.”
According to the bank, the VAT will apply to specific banking services such as electronic banking charges, POS transaction fees, mobile transfer fees, USSD transaction fees, POS activation fees, card issuance fees, and Moniebook subscription charges. The NRS has directed all financial institutions—including commercial banks, microfinance banks, and electronic money transfer operators—to begin collecting and remitting VAT from the January 19 deadline.
Moniepoint clarified that VAT applies only to service-related fees and not to interest, noting that the charge will be listed separately on customer transaction statements. The VAT rate remains 7.5 percent under existing tax laws.
The bank added that the tax will also apply to charges such as loan processing and documentation fees, while services exempt from VAT include interest on loans, advances, deposits, and savings.
“This is not a price increase by Moniepoint,” the bank emphasized. “We are required to collect and remit VAT to the Nigerian Revenue Service (NRS).”
