The federal government has begun deducting a N50 electronic levy from transactions of N10,000 and above made by users of financial technology (Fintech) companies like Opay, Moniepoint, and Kuda.
This levy, known as the Electronic Money Transfer Levy (EMTL), was introduced under the Finance Act 2020. It imposes a one-time fee of N50 on the recipient of any electronic receipt or transfer of N10,000 or more. The levy was announced to take effect from September 9, 2024.
Despite the government’s decision, the EMTL faced significant opposition from Nigerians, with groups like the National Association of Nigerian Students (NANS) urging the government to reverse its implementation.
In a notice to customers in September, Opay clarified that the levy, imposed by the Federal Inland Revenue Service (FIRS), does not benefit Opay. The notice read: “Please be informed that starting September 9, 2024, a one-time charge of N50 will be applied to electronic transfers of N10,000 and above paid into your personal or business account in compliance with the Federal Inland Revenue Service (FIRS) regulations. It is important to note that Opay does not benefit from this charge in any way as it is directed entirely by the federal government.”
Recently, fintech companies have informed their customers that the N50 EMTL deduction started on December 1, 2024. Opay, in a message to its users, reiterated, “Dear Customer, in line with the FIRS, the EMTL applies starting from December 1st, 2024.”
Similarly, Moniepoint notified its customers about the commencement of EMTL charges, stating that the levy will be remitted to the FIRS. The notice read: “Dear customer, you will be charged a stamp duty of N50 on inflows of N10,000 and above. Moniepoint collects and remits this on behalf of and to FIRS.”
The implementation of the EMTL has officially taken effect, with Fintechs already deducting N50 for the federal government on transactions of N10,000 and above.
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