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.

The scheme, anticipated to launch within the next three weeks, holds the potential to become a defining legacy of the current administration.

During a meeting with a delegation from the National Association of Nigerian Students (NANS) led by the Association’s President, Lucky Emonefe, Gbajabiamila emphasized President Tinubu’s focus on the success of the Student Loan Funds policy. He assured that the launch is expected within the next two to three weeks, with final details currently being finalized.

FG Hints on Deploying Education Tax for Student Loan Scheme

Highlighting the program’s potential, Gbajabiamila addressed the unconstitutionality of educational deprivation due to birth circumstances. He stated, “It is to make sure people are not deprived of their education just because of circumstances of their birth that itself is unconstitutional.” 

He urged students to counter negative criticisms and champion the policy’s benefits, stressing their key role in ensuring no deserving student is left behind. “Now we are going to need you for the success of this policy because generally, it is a well-received policy,” he said, calling for their embrace and active participation in its success.

Addressing concerns about potential disruptions due to strike actions by the Academic Staff Union of Universities (ASUU), Gbajabiamila reassured students that the government is actively addressing the union’s concerns and striving to prevent any looming industrial action. 

He reiterated President Tinubu’s commitment to ending strikes in universities and higher institutions through various directives. This commitment includes declarations aimed at ending strikes by academic unions, highlighting the government’s focus on creating a stable learning environment.

Beyond the Student Loan Funds policy, Gbajabiamila acknowledged the inclusion of two youth representatives in the Federal Executive Council. He further noted plans for establishing a Youth Advisory Council to directly advise the President on youth-related matters and development initiatives. 

This move points to the government’s recognition of the importance of youth voices and their inclusion in shaping the nation’s future.

This development holds huge promise for improving educational opportunities and empowering Nigerian youth to contribute meaningfully to the nation’s development.