By Aduragbemi Omiyale

Over N7 billion has been paid out in interest on savings by a leading force in the Nigerian financial technology (fintech) ecosystem, FairMoney Microfinance Bank (MFBank) over the past year.

In the period under review, the technology-enabled lender has disbursed more than N150 billion in loans to customers, which include individuals and businesses.

FairMoney began operations in 2021 as one of the country’s pioneer platforms for rapid credit access.

Beyond expanding access to finance, the company has successfully scaled its operations, evolving into a full-fledged licensed microfinance bank.

It now offers a comprehensive suite of services, including high-interest savings accounts, fixed-term deposits, current accounts, debit cards, and POS solutions for businesses, all aimed at fostering financial inclusion through ease of use and competitive transaction rates.

FairMoney leverages advanced tools, including AI and machine learning algorithms, to analyse extensive financial and alternative data from smartphone usage and user-provided information.

By creating unique credit scores to assess risk, the small bank enables fast, collateral-free lending to underserved segments, ensuring creditworthiness is evaluated beyond traditional banking criteria.

“Our record loan disbursements and savings pay-outs over the past year are more than just numbers; they represent our unwavering tenacity in supporting the Nigerian financial ecosystem.

“At FairMoney, we are driven by the knowledge that our platform provides the essential capital for individuals to thrive and for businesses to scale.

“Our savings products provide both retail and business customers with inflation-beating returns, ensuring genuine wealth preservation. We remain deeply committed to closing the financial gap and empowering our community,” the Managing Director of FairMoney MFB, Mr Henry Obiekea, stated.

Operating as a Central Bank of Nigeria (CBN) licensed institution, FairMoney adheres to all guidelines of the regulator and is strictly regulated to ensure that deposits are insured by the Nigeria Deposit Insurance Corporation (NDIC). Furthermore, the bank prioritizes data protection under the Nigeria Data Protection Regulation (NDPR) and maintains bank-grade security protocols.

Throughout 2025, the Nigerian financial ecosystem operated under the strategic framework of the CBN’s “Payment Systems Vision 2025,” successfully transitioning the nation toward a more inclusive, stable, and cashless economy. By October 2025, Nigeria recorded a massive surge in electronic payments. Total e-payment transactions reached record highs, with instant bank transfers accounting for nearly 70% of all electronic transactions. FairMoney played its part as a conduit, creating a significant digital footprint through the disbursement of loans and the payment of savings interest to customers.

“Our efforts in 2025 were defined by an unwavering commitment to financial inclusivity and a customer-centric mission rooted in fairness, empowerment, and consumer confidence,”

“As we move into 2026, we remain resolute in our mission to uphold these values and drive the continued growth and resilience of Nigeria’s financial landscape,” Mr Obiekea added

By Modupe Gbadeyanka

The Nigeria Revenue Service (NRS) has denied reports that customers performing financial transactions would pay a Value Added Tax (VAT) of 7.5 per cent from January 19, 2026.

Information about this emanated from messages sent out to customers of a financial institution, informing them of the new development in compliance of Nigeria’s new tax laws, especially the Nigeria Tax Act 2025.

It was claimed that Nigerians, as part of efforts of the government to generate more funds from taxes, would begin to pay VAT for the use of banking services like USSD and others.

But reacting in a statement signed by its management on Thursday, January 15, 2026, the tax collecting agency emphasised that the VAT collection for such services was not new.

It stressed that customers have always paid taxes for electronic money transfers and others, as this is charged on the fee, not from the main amount of the transaction.

“The Nigeria Revenue Service wishes to address and correct misleading narratives circulating in sections of the media suggesting that Value Added Tax (VAT has been newly introduced on banking services, fees, commissions, or electronic money transfers. This claim is categorically incorrect.

“VAT has always applied to fees, commissions, and charges for services rendered by banks and other financial institutions under Nigeria’s long-established VAT regime. The Nigeria Tax Act did not introduce VAT on banking charges, nor (sic) did it impose new tax obligation on customers in this regard.

“The Nigeria Revenue Service urges members of the public and all stakeholders to disregard misinformation and to rely exclusively on official communications for accurate, authoritative, and up-to-date tax information,” the statement read.

Business Post reports that what this basically means is that if a customer sends N10,000 and the bank charges N50 for the service, a 7.5 per cent VAT on the N50, which is N3.75, would be paid by the sender, not N750, which is 7.5 per cent of N10,000.