Nigerians to Pay 7.5% VAT on Bank Transfers and USSD Transactions from January 19, 2026

Nigerians are set to incur a 7.5% Value Added Tax (VAT) on selected bank services, including mobile bank transfers and USSD transactions, effective January 19, 2026. The Federal Government issued a notice mandating financial institutions to collect and remit VAT as part of the upcoming VAT regime.

The VAT will apply to certain electronic bank charges, mobile bank fees, transfer fees, USSD transaction fees, and card issuance fees. However, bank transactions will not attract VAT, and services like interest on deposits and savings are exempt.

The Nigerian Revenue Service (NRS) has set a deadline of January 19, 2026, for financial institutions to start collecting and remitting VAT. Millions of Nigerians who rely on daily mobile banking platforms and USSD services for financial transactions are expected to be affected by this new VAT enforcement.