This evening, I received an email from Moniepoint and my first reaction was simple:
“VAT again???”
My people, sit down. Let’s talk — because this one is not small.
Most Nigerians believe VAT only applies when you buy bread, rice, or cement. But quietly, VAT is finding its way back into our banking transactions.
If you don’t understand what’s happening now, you’ll just keep seeing “small small debits” until your money starts disappearing like water.
What Really Happened?
Moniepoint announced that from Monday, 19 January 2026, they are now required by the Nigeria Revenue Service (NRS) to collect 7.5% VAT on certain banking service fees.
In simple terms:
If you do POS withdrawals
Bank transfers
USSD transactions
Or any banking service that attracts a service charge
👉 VAT will now be added to that charge.
Moniepoint made it clear:
This is not a price increase by Moniepoint
It is government policy
VAT applies to fees and charges, not to interest on savings or loans
They are only collecting and remitting it
Let Me Break It Down Simply
Imagine Mama Segun who sells tomatoes at the Market.
She uses a Moniepoint POS. On a good day, she does 30–50 transactions.
Now hear this carefully: Every transaction that already has a POS charge will now carry VAT on that charge.
So it becomes:
Charge + VAT on charge
That is charge on charge.
The painful part? It hits poor and informal workers harder.
A rich man can do one transfer of ₦10 million.
But Mama Segun will do:
₦5,000
₦8,000
₦12,000
₦3,500
Many small transactions.
So who really suffers? Na the hustlers.
Why Nigerians Are Angry
This policy is coming on top of existing charges, including:
₦50 stamp duty on transfers above ₦10,000
Bank service charges
POS charges
So Nigerians are now asking:
“We will pay stamp duty + bank charges + VAT on bank charges?”
My people, that one no funny again.
Why This Policy Is a Problem
1️⃣ It Undermines the Cashless Policy
Government says: “Go cashless.”
But government actions are saying: “Pay more to go cashless.”
That contradiction will push people back to:
Cash
Cash-and-carry
Cash under pillow
And that increases:
Robbery
Insecurity
Fake notes
Kidnapping risk
2️⃣ It Quietly Increases Cost of Living
When POS charges increase, traders won’t absorb it alone.
They will add it to prices.
That’s why you’ll go to the market and wonder:
“Why is everything increasing even when dollar hasn’t jumped?”
Policies like this are the cause.
3️⃣ It Punishes the Informal Sector
Nigeria is not the U.S
Millions survive on:
POS businesses
Daily transfers
Constant cash flow
This policy taxes movement of money, not profit.
Even if business doesn’t make profit, you must still transfer money. That is dangerous for a fragile economy.
Let Me Be Honest
I’m not against tax.
A country needs revenue.
But the problem is this:
Taxes are increasing, but public services are not.
If Nigerians are paying more, we should see:
Better roads
Stable electricity
Better hospitals
Improved security
Without this, people will resist the system — openly or quietly.
What Smart Nigerians Should Do (Practical Tips)
Instead of only complaining, protect yourself:
1️⃣ Reduce transfer frequency
Batch transfers instead of doing many daily.
2️⃣ Withdraw bigger amounts at once
Avoid multiple small POS withdrawals.
3️⃣ Monitor your bank statements
Those “small small deductions” are salary killers.
4️⃣ Let your money work for you
Since charges are rising, idle money is expensive.
Consider:
Money Market Mutual Funds
Treasury Bills
FGN Bonds (long term)
If government is removing money through charges, your investments should be paying you back through interest.
Final Word
This Moniepoint email is not just information. It is a warning.
Many people will not notice anything — until month-end, when they calculate and discover they paid thousands of naira in charges.
The economy is already hard. This is not the best timing for this kind of policy.
