Monday, April 27, 2026
FB X LI YT
Breaking
“Stay out of Oyo affairs” — Think Yoruba First fires warning at Nonentity Igbo group over comments on Olubadan stool, political matters “Genocidal and diabolical” — Think Yoruba First blasts Farooq Kperogi over claims that Ilorin, Shao, Jebba are not Yoruba towns 🇳🇬📚 Ridwan Ajayi emerges new NANS JCC Lagos chairman after 5-5 tiebreaker vote — 10 tertiary institutions participated 🇳🇬📜 130 CIVIL SOCIETY GROUPS PETITION KWARA GOVERNOR OVER DELAY OF BAALE’S UPGRADE LETTER — ACCUSE COMMISSIONER OF BLOCKING ELEVATION ON OBAS’ ORDERS! 🇳🇬🎀 RIHANNA WEARS YORUBA GELE — A Global Icon Embraces Our Heritage, Proving Gele Will Never Be Reduced to a Slur! 🇳🇬🔥 FAVORITISM UNMASKED: Seyi Tinubu Empowers Imo Youth With Freezers, Gives Yorubaland Rice and Foodstuffs That Will Finish in a Week — Is It Because His Wife Is Igbo? The first revelation landed like a thunderbolt. Ella, the face of the campaign against Omotoso, had privately apologized to him. That apology never made it online. According to the Commissioner, it was omitted because it did not serve what he described as a calculated clout-chasing agenda. The public was fed a version of events designed to provoke outrage, not inform discourse. 🇳🇬💔 2000 KADUNA RELIGIOUS CRISIS: When Sharia Introduction Sparked Bloodshed — Over 500 Feared Dead, Churches, Mosques, Businesses Razed!
BUSINESS

Banks to deduct 7.5% VAT on transfers, PoS fees from January 19

January 15, 2026 • 2 min read

By Ademola Adekusibe
January 15, 2026

Banks across Nigeria will begin deducting 7.5 percent Value Added Tax (VAT) on selected banking service fees, including mobile transfers and Point of Sale (PoS) transaction charges, from January 19, 2026.

The development was communicated to customers by Moniepoint Microfinance Bank in an email notification, where the bank explained that the deduction follows a government-endorsed regulatory directive.

According to the notice, the VAT is not charged on the actual amount transferred or withdrawn by customers. Instead, it applies strictly to service-related charges, such as the N50 stamp duty and other transaction fees, with the proceeds remitted to the Nigerian Revenue Service (NRS), formerly the Federal Inland Revenue Service (FIRS).

Moniepoint stated that from January 19, all financial institutions are required to collect and remit the tax on behalf of the government.

The services affected by the VAT include electronic banking charges such as PoS transaction fees, mobile banking transfer fees, USSD transaction fees, PoS activation fees, card issuance fees, and Moniebook subscription charges. Loan processing and documentation fees will also attract the tax.

However, the bank clarified that certain services remain exempt from VAT. These include interest on loans and advances, as well as interest earned on deposits and savings.

The bank stressed that the VAT implementation does not represent a price increase by Moniepoint or other banks, but a statutory obligation imposed by the government. Customers will see the VAT itemised separately on transaction receipts and account statements for transparency.

The new directive aligns with Nigeria’s existing tax framework, which retains the VAT rate at 7.5 percent under the current tax laws.