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If you use mobile apps or POS terminals for your business and personal deals, there is a fresh update you need to know. 

Starting Monday, January 19, 2026, Nigerian financial institutions will begin a new era of tax collection on their services.

Moniepoint Microfinance Bank recently alerted its customers about a government directive to apply a 7.5% Value-added tax (VAT) on several banking activities. 

This isn't just for one bank; the Nigerian Revenue Service (NRS) has set this deadline for all commercial banks, microfinance houses, and electronic money operators.

What exactly are you paying for?

It is important to clarify that this tax is not a "price hike" by your bank. Instead, the banks are acting as agents to collect this money for the government. 

The 7.5% charge will be applied to the service fees you pay, not the actual money you are sending or withdrawing.

For example, if you are charged a fee for a POS withdrawal or a mobile transfer, the VAT will only be calculated based on that fee. Other items included in this net are:

• USSD transaction charges
• Card issuance and POS activation fees
• Loan processing and documentation costs

What remains free of VAT?

The good news is that the government is not taxing everything. Your hard-earned savings and the interest you earn on deposits remain untouched. Additionally, the interest charged on loans and advances will not attract this 7.5% tax.

To ensure transparency, banks have confirmed that these charges will appear as a separate line on your transaction statements. This way, you can easily track exactly how much is going toward the tax.

This move follows a push by the Nigerian Revenue Service (formerly FIRS) to streamline revenue collection across the digital banking space. 

As the Monday deadline approaches, Nigerians are advised to keep an eye on their transaction alerts to stay informed on how these changes affect their daily spending.