Nigerians will begin paying a 7.5 per cent Value Added Tax (VAT) on mobile bank transfers and Unstructured Supplementary Service Data (USSD) transactions from Monday, January 19, 2026.
This follows a directive from tax authorities mandating financial institutions to commence the collection and remittance of VAT on eligible electronic banking transactions.
The development was disclosed in a notice issued to customers by financial institutions, informing them of what was described as a government-endorsed regulatory change regarding VAT implementation.
According to the notice, banks and other financial service providers are now required to deduct the 7.5 per cent VAT at the point of transaction and remit the proceeds to the Nigerian Revenue Service (NRS), formerly known as the Federal Inland Revenue Service (FIRS).
The notice stated that the measure is in line with existing tax regulations and aims to improve VAT compliance and revenue collection by the government.
With the new directive, customers using mobile banking platforms, transfer services, and USSD codes for financial transactions will see VAT charges applied to applicable service fees beginning from the stated date.
