"7.5% VAT on Mobile Transfers, USSD in Nigeria From Jan 19

Nigerians will start paying a 7.5% Value Added Tax (VAT) on mobile bank transfers and USSD transactions from January 19, 2026. This is due to a government-backed regulatory directive aimed at expanding the tax net and boosting non-oil revenue.

The VAT will apply to service fees charged by banks and financial institutions for electronic transactions, not the transferred amount itself. Services that won't attract VAT include interest on deposits and savings. 

Here's a breakdown of what's happening:

- *VAT on Banking Services*: 7.5% VAT on mobile banking fees, USSD transaction fees, and card issuance fees

- *Stamp Duty*: ₦50 charge on electronic transfers of ₦10,000 and above, payable by the sender

- *Tax Purpose*: To improve tax collection and grow non-oil revenue

The Nigerian government has clarified that this isn't a price increase by banks, but rather a statutory requirement for VAT collection and remittance.