Industry experts have moved to debunk viral claims suggesting that fintech platforms like Moniepoint are imposing unauthorized new charges on customers.
Speaking with NewsDirect, analysts described the recent public outcry as a product of misinformation, noting that the deductions are strictly in compliance with federal tax enforcement.
The core of the matter lies in the 7.5% Value Added Tax (VAT) on financial service fees, a staple of Nigeria’s tax framework since 2021.
Experts clarified that the Federal Inland Revenue Service (FIRS) issued Circular No. 2021/04 on March 31, 2021, stipulating that fees, commissions, and charges from banks and financial institutions are subject to VAT.
The recent surge in visibility follows a formal directive issued by the FIRS on December 12, 2025.
This letter instructed all Deposit Money Banks, Mobile Money Operators, and Payment Gateways to begin the mandatory deduction and remittance of VAT under the newly enacted Nigeria Tax Act.
Following an 18-day grace period for system reconfiguration, full compliance became mandatory on January 19, 2026.
Critics on social media have mistakenly claimed that fintechs are taxing the principal amount of transfers.
However, experts emphasize that VAT is only applied to the service fee not the total sum being sent. The primary shift is the expansion of the tax net to include microfinance banks and fintech platforms that were previously not required to deduct these taxes directly.
Rather than introducing hidden levies, platforms like Moniepoint issued notifications to customers in the spirit of transparency following regulatory instructions.
Industry leaders are now calling for better communication from regulators to prevent the vilification of financial institutions for simply obeying statutory government directives.