The federal government has officially begun implementing the N50 Electronic Money Transfer Levy (EMTL) on transactions of N10,000 and above, involving users of financial technology (fintech) companies such as Opay, Moniepoint, Kuda, and others. This levy, introduced under the Finance Act of 2020, requires a one-time deduction of N50 from the recipient for any electronic transfer or receipt of N10,000 or more. The levy, which was initially set to take effect on September 9, 2024, was delayed but has now been enforced starting December 1, 2024.
The decision to implement the EMTL has sparked strong opposition from various sectors of the Nigerian public. In particular, the National Association of Nigerian Students (NANS) has voiced its concern over the levy, urging the government to reconsider or reverse its decision. Many Nigerians have expressed dissatisfaction with the new tax, arguing that it places an unnecessary burden on users of digital financial services.
Fintech companies such as Opay and Moniepoint have clarified that they are merely facilitators of the levy and do not benefit financially from the deduction. Opay, for instance, made it clear in a statement that it does not retain any portion of the N50 charge, which is directed entirely to the federal government.
Both Opay and Moniepoint, in separate messages sent to their customers on Saturday, confirmed the commencement of the EMTL. Opay’s message stated, “Dear Customer, in line with the FIRS, the EMTL applies starting from December 1st, 2024.” Similarly, Moniepoint informed its users, stating, “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 the FIRS.”
With this new regulation in place, fintech companies are now obligated to deduct the N50 levy from transactions involving amounts of N10,000 and above, remitting the funds to the Federal Inland Revenue Service (FIRS). This has already taken effect, as evidenced by the notices sent by the companies to their customers.
As the levy becomes fully operational, it remains to be seen how it will impact fintech usage in Nigeria, particularly in terms of public opinion and further pushback from affected groups. The government’s position on the implementation is clear, but the controversy surrounding the new charge suggests that this may not be the last word on the matter.
Gathered by: Onoro Promise Edesiri