7.5% VAT on Mobile, USSD Banking Transactions to Begin January 19

7.5% VAT on Mobile, USSD Banking Transactions to Begin January 19

Nigerians will start paying a 7.5% value-added tax (VAT) on certain banking services beginning January 19, 2026, following a government-backed directive.

The VAT will apply to mobile bank transfers, USSD transactions and card issuance fees while interest earned on savings and deposit accounts will remain exempt.

The Nigerian Revenue Service (NRS), formerly the Federal Inland Revenue Service, has instructed all financial institutions including commercial banks, microfinance banks and electronic money transfer operators to collect and remit the tax from the effective date.

Millions of Nigerians who frequently use mobile and USSD banking services are expected to feel the impact of the new charge, as everyday digital transactions will now incur an added cost.

The measure represents a significant shift in Nigeria’s digital banking landscape, aiming to increase government revenue while formalising taxation on electronic financial transactions.