FG Orders 7.5% VAT Collection on Electronic Banking Service Fees Starting January 2026

• The Federal Government has mandated banks and fintechs to collect a 7.5% VAT on selected electronic banking service fees starting January 19, 2026.
• The VAT applies to service charges for transactions like mobile money transfers, USSD transactions, and card issuance, not the transaction amount itself.
• The collected VAT will be remitted to the Nigerian Revenue Service.
• This directive is not a price increase but compliance with tax regulations.
• Interest earned on savings and deposit accounts is exempt from this VAT.

Source: vanguardngr.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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