AfriPulse
Banks will begin deducting 7.5 percent value-added tax (VAT) on banking services, including point of sale (POS) transaction fees and mobile transfer fees, from January 19.
In an email to customers, Moniepoint Microfinance Bank said the charge was the result of a government-endorsed regulatory directive.
The VAT applies to the N50 stamp duty and does not affect the actual value of transactions or withdrawals.
Moniepoint said the proceeds would be remitted to the Nigerian Revenue Service (NRS). The bank said:
“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) (formerly known as the Federal Inland Revenue Service).
“VAT will apply to certain banking services that include: electronic banking charges such as POS transaction fees, mobile banking fees (transfers), USSD transaction fees, POS activation fee, card issuance fee and Moniebook subscription.”
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The bank added that the tax would also apply to other fees such as loan processing and documentation charges. Moniepoint said:
“Services that DO NOT attract VAT include: interest on loans and advances, and 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).
“The NRS has communicated a deadline of 19th January for all financial institutions (commercial banks, microfinance banks and electronic money transfer operators) to start collecting and remitting VAT.”
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The bank clarified that VAT is applied only to banking or service fees and not to interest, adding that the charge will appear separately on transaction statements.
The VAT rate remains 7.5 percent under current tax law.
Source: MotherhoodInStyle | Read the Full Story…
