FG Directs Banks, Fintechs to Charge 7.5% VAT on Electronic and USSD Banking Services Nigeria’s Federal Government has directed banks, fintech companies, and other financial service providers to begin charging a 7.5 per cent Value Added Tax (VAT) on eligible electronic banking and USSD service fees, as part of efforts to strengthen tax compliance in the digital economy. The directive applies to service charges on electronic transactions—including mobile transfers, USSD banking, card-related fees, and other digital financial services—but does not apply to the actual funds being transferred, according to industry guidance. What the VAT Applies To Under Nigeria’s VAT framework,…
Author: FinTech Today
CBN Tightens Rules on Fintech Float Accounts: What It Means for Nigerian Wallet Users Nigeria’s fintech ecosystem is facing quiet but significant regulatory tightening, as the Central Bank of Nigeria (CBN) increases scrutiny over how fintech companies hold and manage customer float accounts—the pooled funds backing digital wallets and payment platforms. While no dramatic public announcement has been made, industry insiders say the regulator is reinforcing compliance expectations to protect customer funds, reduce systemic risk, and close oversight gaps as fintech usage continues to grow. What Are Fintech Float Accounts? Float accounts refer to bank-held accounts where fintech companies keep…
How VAT Works in Nigeria for Banks, Fintech, and POS Operators Value Added Tax (VAT) in Nigeria is a consumption tax charged on eligible goods and services at a standard rate of 7.5%, as provided under the Value Added Tax Act. In the financial services sector, VAT applies only to service fees and commissions, not to the actual money being transferred. Current VAT Rate in Nigeria VAT rate: 7.5% Administered by: Federal Inland Revenue Service (FIRS) Who collects it: Banks, fintechs, POS operators, and other service providers Who bears the cost: The customer (end user) 1. VAT in Banking Services…
FG Directs Banks, Fintech to Charge 7.5% VAT on Electronic, USSD Banking Services The Federal Government of Nigeria has issued a directive requiring commercial banks, microfinance banks, and financial technology (fintech) firms to begin collecting and remitting a 7.5 per cent Value Added Tax (VAT) on selected electronic banking service fees, effective Monday, January 19, 2026. Under the directive, the VAT will apply to specific electronic banking charges such as mobile money transfer fees, Unstructured Supplementary Service Data (USSD) transaction fees, and card issuance fees — but not on the actual amount being sent in a transaction. Which Charges Attract…
FairMoney Disburses ₦150bn in Loans, Pays Over ₦7bn Interest on Savings FairMoney Microfinance Bank (MFB) has disclosed that it disbursed more than ₦150 billion in loans over the past year, while paying over ₦7 billion in interest to customers who saved on its platform, underscoring the fintech’s growing role in Nigeria’s digital banking and credit ecosystem. The milestone highlights FairMoney’s dual focus on credit access and savings mobilisation, at a time when Nigerians are increasingly turning to digital financial platforms for fast loans, competitive savings returns, and convenient banking services. Expanding Access to Credit FairMoney’s loan disbursement figures reflect sustained…
Premier Cool, PalmPay Launch N100m ‘10K for 10K’ Promo to Reward 10,000 Nigerians Premier Cool, one of Nigeria’s most recognised antibacterial cooling bar soap brands, has partnered with digital banking platform PalmPay to launch a nationwide consumer promotion called “10K for 10K”, aimed at rewarding everyday Nigerians with instant cash rewards. The campaign, which runs from January 12 to April 11, 2026, will reward 10,000 Nigerians with ₦10,000 each, distributing a total of ₦100 million in cash prizes. Winners will be selected and paid instantly into their PalmPay wallets, with approximately 111 winners chosen daily throughout the three-month period. How…
Why Technology-Enabled Banking Is a Multiplier for Nigeria’s 2036 Development Goal The FairMoney Perspective As Nigeria looks toward its long-term development ambitions under Vision 2036, one truth is becoming increasingly clear: technology-enabled banking is not just a support system—it is a multiplier. From financial inclusion and SME growth to job creation and economic resilience, digital banking platforms such as FairMoney are redefining how capital flows across Africa’s largest economy. Nigeria’s ability to achieve sustainable growth by 2036 will depend heavily on how effectively it leverages financial technology, data, and digital infrastructure to unlock productivity across sectors. Understanding Nigeria’s 2036 Vision…