Exclusive: Who Pays 7.5% VAT on Mobile Transfers, Banks or Nigerians? NRS Clarifies
- The Nigerian Revenue Service has issued clarification following widespread confusion over VAT on mobile transfers
- Banks and fintech notices have triggered public concern ahead of a new VAT implementation date
- Authorities claimed the policy has been widely misunderstood and does not mean what many Nigerians fear
The Nigerian Revenue Service (NRS) has clarified that the recently reported 7.5% Value Added Tax (VAT) on mobile transfers and other banking services will be paid by banks and fintechs, not customers.
Source: UGC
A top NRS official, who attended discussions on the matter, told Legit.ng on Thursday, January 15, that the tax will apply only to the service charges banks make on transfers, not the transaction value itself.
He explained:
“The 7.5% VAT will apply ONLY to the charges banks make on customers’ transfers and not on the value of the transaction. For instance, there is a N50 stamp duty charged on a transfer of N10,000. The VAT will apply on that N50, which means it is the bank that will pay it and not the customers. So, there is no imposition of additional tax burden on Nigerians as being speculated in various reports."
“So the policy is on the bank, not on the customers, and it is not an additional tax on the banks as well. The notices being shared across by Moniepoint and others have caused unnecessary confusion.”
7.5% VAT starts January 19, 2026
The clarification comes after several financial service providers circulated notices to customers about the new VAT. One such notice stated:
“Dear valued customer,"
"We would like to inform you of an upcoming government-endorsed regulatory change regarding Value Added Tax (VAT). From Monday, 19 January 2026, we are required to collect a 7.5% VAT, to be remitted to the Nigerian Revenue Service (NRS). VAT will apply to certain banking services that include electronic banking charges such as mobile banking fees (transfers), USSD transaction fees, and card issuance fees."
Source: Getty Images
"Services that DO NOT attract VAT include interest on deposits and savings. Please note: this is not a price increase by Moniepoint. Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service (NRS). VAT applies only to banking or service fees, not interest. VAT charge will appear separately on your transaction reports and statements.”
The NRS official emphasised that the new regulation is not an additional tax on Nigerians, reassuring customers that the VAT will only affect the banks’ service charges and will not increase the cost of transactions for mobile banking users.
Banks, microfinance institutions, and FinTechs are expected to start implementing the VAT remittance by January 19, 2026, according to the NRS directive.
New bank charges Nigerians will pay 2026
Earlier, Legit.ng published a full list of new bank charges Nigerians will begin paying on selected services such as transfers, USSD transactions and electronic payments from January 2026.
The report explained that a ₦50 stamp duty will also apply to electronic transfers of ₦10,000 and above, further increasing the cost of routine banking transactions for individuals and small businesses.
Aside from VAT and stamp duty, existing transfer, card maintenance, and alert fees remain in place, raising concerns among customers about the cumulative burden of multiple charges on everyday digital banking activities.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
