By Muhammad Mamman
Nigerians will begin paying a 7.5 percent value-added tax (VAT) on mobile bank transfers and USSD transactions from January 19, 2026, according to a notice circulated to customers by digital financial services provider Moniepoint.
In the message, Moniepoint said the new charges would apply to electronic banking services, including mobile app transfers and USSD-based payments, adding that the directive is backed by the federal government.
The move signals a significant shift in Nigeria’s rapidly expanding digital payments space, where millions of people rely on mobile transfers and USSD codes for everyday transactions, particularly in areas with limited internet access.
While the government has not yet issued a detailed public statement outlining the scope and implementation framework of the VAT charge, the notice suggests that financial institutions and fintech companies have been instructed to begin applying the levy from the stated date.
Value-added tax in Nigeria currently stands at 7.5 percent and is applied to a range of goods and services. Extending it to mobile transfers and USSD payments could increase transaction costs for individuals and small businesses that depend heavily on cashless payments.
The development is likely to spark debate among consumers and industry stakeholders, many of whom have previously raised concerns about the cumulative impact of banking charges on financial inclusion.
For now, customers have been advised to factor the additional cost into their electronic transactions as the January deadline approaches.
