Nigerian Banks to Implement 7.5% VAT on Mobile, USSD Transfers from Jan 19, Expert Explains Impact
Nigerian banks are set to introduce a 7.5% Value Added Tax (VAT) on mobile and USSD bank transfers from January 19, 2026. This move, explained by financial expert Gilbert Ayoola, aims to ensure stricter compliance with tax regulations and increase revenue.
The new VAT will be calculated on transaction fees imposed by banks for providing mobile and USSD banking services, while the principal transfer amounts remain exempt. Low to middle-income earners and small businesses, who heavily rely on USSD banking due to limited smartphone and internet access, are expected to feel the impact.
Ayoola also emphasized the need for banks and fintech innovators to offer lower-cost channels to retain customers. In a related development, Lere Olayinka shared an experience where a significant amount was deducted from a transfer due to changes in Nigeria's tax laws.
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