E-transfer Levy Sparks Outrage as POS Operators Increase Fees

In a move that has sparked widespread dissatisfaction, operators of Point-of-Sale (POS) terminals have increased their charges, following the implementation of the Federal Inland Revenue Service’s (FIRS) Electronic Money Transfer Levy (EMTL). This N50 levy applies to any electronic transfer of N10,000 or more, in line with the new tax regulations.

Starting December 1, 2024, several fintech platforms, including Moniepoint, PalmPay, and OPay, began notifying their customers of the N50 charge on any electronic inflow of N10,000 or more. The levy, part of the Finance Act 2020, is designed to bring more electronic transactions under the scope of the Stamp Duty Act.

Moniepoint clarified in an email that the N50 charge will be applied to inflows above N10,000, but emphasized that the company does not benefit from the levy. Instead, it is collected by Moniepoint and remitted to the FIRS. PalmPay echoed this, stating that the levy, effective November 30, 2024, would be remitted directly to the federal government.

Some POS operators, however, are struggling with the impact of the levy, particularly in regions with limited cash availability. Kazeem Adewale, a POS operator in Ogun State, voiced his frustrations, explaining that many customers are upset about the increase in charges. Other operators, such as Mrs. Helen Faniran in Ondo, shared that the cost of acquiring cash from local vendors has increased, leading to higher transaction fees.

While some POS operators are gradually introducing the new charges, others, like a Lagos-based vendor, have yet to implement them. Consumers have also taken to social media to voice their concerns. One user on X (formerly Twitter), Sam Addai, criticized the levy, calling it an unfair tax on digital transactions. Another user, 6xstem, called it “robbery in broad daylight.”

As the EMTL continues to be enforced, the increase in POS charges is causing growing unease among Nigerian consumers, who are questioning the fairness and transparency of this new financial burden.