VAT to Apply on Mobile Bank Transfers and USSD Payments from January 19
Nigerians will begin paying a 7.5 per cent Value Added Tax (VAT) on mobile bank transfers and USSD transactions starting January 19, 2026, following a new directive backed by the Federal Government.
The development was disclosed to customers by digital financial services provider, Moniepoint, which issued a notice explaining that the VAT charge will now apply to electronic banking services, including mobile transfers and USSD payments.
According to the notification, the tax will be deducted at the point of transaction in line with existing VAT regulations, marking a significant shift in how everyday banking services are charged.
The introduction of VAT on electronic transactions is expected to impact millions of Nigerians who rely heavily on mobile banking and USSD platforms for daily financial activities, especially in areas with limited access to physical bank branches.
While the government has not yet issued a standalone public statement, the directive signals a broader move to expand the tax net within the fast-growing digital financial ecosystem.
VAT to Apply on Mobile Bank Transfers and USSD Payments from January 19