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

The VAT will apply to specific electronic banking charges, including mobile bank transfers, USSD transactions, and card issuance fees. However, interest earned on savings and deposit accounts will remain exempt from the tax.

The Nigerian Revenue Service (NRS), formerly the Federal Inland Revenue Service, has directed all financial institutions from commercial and microfinance banks to electronic money transfer operators to start collecting and remitting the VAT from the effective date.

Millions of Nigerians who rely heavily on mobile and USSD banking will feel the impact, as everyday transactions now come with an added cost, marking a notable shift in the country’s digital banking landscape.

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