By Adetutu Audu

Over the past day, Nigerians have taken to social media, especially X, to voice their frustration after noticing an additional 7.5% Value Added Tax (VAT) applied to certain Moniepoint transaction charges. The announcement, sent via email and in-app notifications, stated that starting January 19, 2026, Moniepoint, like other financial service providers are required to collect and remit VAT on selected electronic banking service fees.

For many users, the news came as a surprise, and reactions were swift and vocal. Customers expressed anger and confusion over the additional VAT, highlighting the strain it places on everyday transactions.

With the cost of living already high, even small fees now feel significant, and social media quickly filled with posts complaining about the new development. Many users admitted that they were unaware that some of their transaction fees were already subject to VAT, and some interpreted the notice as a new price hike rather than the enforcement of an existing statutory requirement.

Amid rising inflation, the timing of the VAT deductions struck a nerve, with many Nigerians criticizing the announcement as insensitive to customers’ realities.

One viral post read, “Why must I pay extra VAT on transfer charges I already pay every day? Is this just a sneaky way for Moniepoint to make more money!”

Moniepoint had issued a communication stating that 7.5% VAT would apply to service fees such as mobile money transfers, USSD transaction charges, and card issuance fees starting January 19, 2025 and that the change is mandated by tax authorities rather than an arbitrary price increase.

The company also assured users that VAT would be itemized separately on transaction statements to ensure transparency. However, the Nigeria Revenue Service issues a clarification stating that the VAT on banking fees was not newly introduced.

Following these clarifications, the backlash has continued. Frequent transactions, especially for small business owners, agents, and daily users, make even minor fees noticeable and impactful on profit margins. Many users insist Moniepoint would need to do more to explain why the charges are newly introduced and make such changes easier to understand.

As public frustration persists with debates online about the fairness and timing of the deductions. The strong reaction highlights two things: Nigerians are still adjusting to the new visibility of this tax, and customers highly value clarity and transparency from financial institutions.

Fintech platforms have long been seen as cheaper and more convenient alternatives for payments, so any perceived increase in charges, even for statutory reasons, is bound to draw attention. The VAT uproar is therefore not just about money, it’s about trust, communication, and how well users understand changes to services they rely on every day.

The social media backlash over Moniepoint’s VAT charges is a clear reminder that fintech companies need to communicate changes in ways their users can easily understand, especially in a climate where every naira counts.