The Federal Government of Nigeria has started deducting a N50 electronic levy from transactions of N10,000 and above made through financial technology (Fintech) companies, including Opay, Moniepoint, Kuda, and others, effective from December 1, 2024.
The Electronic Money Transfer Levy (EMTL), introduced under the Finance Act 2020, imposes a one-time N50 charge on recipients of electronic transfers of N10,000 or more. The levy was initially set to take effect on September 9 but faced opposition from various groups, including the National Association of Nigerian Students (NANS), who called for its reversal.
Opay, Moniepoint, and other Fintech companies have notified their customers about the commencement of the EMTL deductions. In a message sent to users on Saturday, Opay stated, “Dear Customer, in line with the FIRS, the EMTL applies starting from December 1st, 2024.” Similarly, Moniepoint informed its customers that they would be charged a stamp duty of N50 on inflows of N10,000 and above, clarifying that the collected levy would be remitted to the Federal Inland Revenue Service (FIRS).
The implementation of the EMTL has officially begun, with Opay, Moniepoint, Kuda, and other Fintech companies already deducting the N50 levy on behalf of the federal government for qualifying transactions. The move has sparked concern among Nigerians, who fear the additional financial burden amidst the current economic challenges.
In an earlier notice sent to customers in September, Opay explained that the levy was imposed by the FIRS and emphasized that the company did not benefit from the charge in any way, as it was entirely directed by the federal government.
The introduction of the EMTL is part of the government’s efforts to increase revenue generation and expand the tax base. However, critics argue that the levy may discourage the use of digital financial services and hinder financial inclusion efforts in the country.