Nigerians will start paying 7.5% Tax (VAT) on certain banking services, including mobile bank transfers and USSD transactions, from January 19, 2026.
This is due to government -backed regulatory directive requiring financial institutions to collect and remit VAT on eligible banking services.
The VAT will apply to electronic banking charges such as mobile banking fees, USSD transaction fees, and card issuance fees.
However, services exempt from VAT include interest earned on deposits and savings.
Financial institutions will clearly itemize the VAT charges on transaction reports and statements.
This change is expected to affect millions who rely on mobile banking platforms and USSD services for financial transactions.
-9News Nigeria.
