NATCOMS kicks, claims double taxation, may go to court
Indications emerged yesterday that from January 19, 2026, Nigerians will begin paying a 7.5 per cent Value Added Tax (VAT) on selected banking services, including mobile bank transfers and Unstructured Supplementary Service Data (USSD) transactions, following a new government-backed regulatory directive.

Fintech operator, Moniepoint, in a notice sent to its teeming customers, yesterday, said is a directive from tax authorities mandating financial institutions to begin VAT collection and remittance.

Reacting to the development, President, National Association of Telecom Subscribers of Nigeria (NATCOMS), Deolu Ogunbanjo, described the development as cruel, saying it amounts to double taxation, even multiple taxation.

“Already, consumers are paying N6.98 per session on USSD, now we are going to be charged extra 7.5 per cent. The Federal Government should review this tax stuff, it will be a burden on bank customers and others. We are saying no to the planned 7.5 per cent VAT. They should review the entire process, if not we shall go to court,” Ogunbanjo stated.

The notice read: “We would like to inform you of an upcoming government-endorsed regulatory change regarding Value Added Tax (VAT).

“From Monday, January 19, 2026, we are required to collect a 7.5 per cent VAT, to be remitted to the Nigerian Revenue Service (NRS) (formerly known as the Federal Inland Revenue Service).”

The firm disclosed that the tax will apply to “certain banking services,” including “electronic banking charges such as mobile banking fees (transfers), USSD transaction fees and card issuance fee.”

However, Moniepoint clarified that not all banking-related transactions would attract the tax, noting that “services that DO NOT attract VAT include: interest on deposits and savings.”

The firm also distanced itself from responsibility for the new charges, stressing that “this is not a price increase by Moniepoint.”

“Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service (NRS),” the notice read.

It further explained that the tax authority had issued a clear timeline for compliance across the financial sector.

“The NRS has communicated a deadline for January 19, 2026 for all financial institutions (commercial banks, microfinance banks and electronic money transfer operators) to start collecting and remitting VAT,” the statement said.

Moniepoint also emphasised that the VAT would be limited strictly to service charges, stating that “VAT applies only to banking or service fees, not interest.”

The firm also informed customers that the deductions would be clearly itemised, as “VAT charge will appear separately on your transaction reports and statements.”

The new VAT enforcement is expected to affect millions of Nigerians who rely daily on mobile banking platforms and USSD services for financial transactions.

Other financial institutions are expected to also convey their own messages to their customers.

Reacting to the development, the President, National Association of Telecom Subscribers of Nigeria (NATCOMS) Chief Deolu Ogunbanjo, described the development as cruel, saying it amounts to double taxation, even multiple taxation.

“Already, consumers are paying ₦6.98 per session on USSD, now we are going to be charge extra 7.5 per cent. The Federal Government should review this tax stuff, it will be a burden on bank customers and others. We are saying no to the planned 7.5 per cent VAT. They should review the entire process, if not we shall go to court,” Ogunbanjo stated.