Nigerians to Pay VAT on Mobile Bank Transfers and USSD Transactions from January 19 2026

posted on Jan 15, 2026

How the new tax directive affects digital banking and what Page Financials customers should know

Nigerians to Pay VAT on Banking Service Charges

A new government-backed directive will soon change the cost of everyday digital banking in Nigeria. Beginning January 19, 2026, a 7.5 percent Value Added Tax will be applied to certain banking service fees, including mobile transfer charges, USSD transaction fees, and card issuance costs.

The policy was communicated to customers by several financial institutions, including Moniepoint, following instructions from the Nigerian Revenue Service, formerly known as the Federal Inland Revenue Service. All banks, microfinance institutions, and electronic money operators are now required to collect and remit VAT on these services.

What the VAT Will and Will Not Cover

The new VAT rule applies strictly to service charges and not to the money customers save or earn. This means that:

Services that attract VAT include

Mobile banking transfer fees
USSD transaction charges
Card issuance fees

Services that do not attract VAT include

Interest on savings
Interest on fixed deposits
Other earnings on customer funds

Financial institutions have clarified that this is not a price increase initiated by banks but a regulatory obligation imposed by tax authorities.

Why This Matters to Everyday Nigerians

Millions of Nigerians rely on mobile banking and USSD services for daily transactions such as paying bills, sending money to family, and running small businesses. With the introduction of VAT on these services, customers may notice slight increases in transaction costs.

For frequent users of digital banking platforms, these small charges can add up over time. This makes financial planning and smarter money management more important than ever.

How Page Financials Is Supporting Its Customers

At Page Financials, we understand that changes in financial regulations can feel overwhelming. That is why we remain committed to keeping our customers informed, empowered, and financially confident.

As VAT begins to apply to certain transaction fees, Page Financials continues to focus on helping customers manage their finances better through:

Transparent communication on fees and charges
Financial education to help customers understand banking costs
Smart digital solutions that make money management easier
Access to savings and investment products that help grow wealth despite rising transaction expenses

Our goal is to ensure that while policies evolve, your financial journey remains steady, clear, and rewarding.