The federal government has officially commenced the deduction of a N50 levy on electronic transfers of N10,000 and above, effective 1 December 2024.
The levy, known as the Electronic Money Transfer Levy (EMTL), applies to transfers received through financial technology platforms, including Opay, Moniepoint, and Kuda, among others.
This follows an earlier announcement by the Federal Inland Revenue Service (FIRS) in September 2024, which disclosed plans to implement the levy in accordance with the Finance Act 2020.
The EMTL imposes a one-time charge of N50 on recipients of electronic transfers above the specified threshold, with funds collected being remitted directly to the FIRS.
Notifications sent to customers by fintech companies over the weekend confirmed the commencement of the deductions. Opay, in its statement, reiterated that the levy is mandated by the federal government and not retained by the platform.
“Starting 1 December 2024, a one-time levy of N50 will be applied to electronic transfers of N10,000 and above in compliance with FIRS regulations. Opay does not benefit from this charge,” the notice read.
Similarly, Moniepoint issued a statement clarifying the deductions: “Dear customer, you will be charged N50 on inflows of N10,000 and above. Moniepoint collects and remits this on behalf of the federal government to the FIRS.” Other fintech platforms, including PalmPay, issued similar updates to their users.
The implementation of the EMTL has drawn complaints from Nigerians, with many tired of the current financial burden brought about by the recent economic downturn.
Advocacy groups, including the National Association of Nigerian Students (NANS), have called on the government to reconsider the policy, particularly in light of economic challenges.
Nonetheless, the levy has been placed as a key revenue-generating tool for the government. Over the past year, digital transactions in Nigeria have increased, with cashless transactions exceeding N600 trillion in 2023.
The FIRS has mandated all financial institutions, including fintech operators, to ensure prompt deductions and remittance of the levy.
With the deductions taking effect, customers of fintech platforms have to adjust to the new charges, with users talking about its impact on already stressed household finances.
While the government emphasises the need for increased revenue, many Nigerians view the levy as a reflection of continued economic pressures on the populace.
