FG Begins N50 Electronic Levy Deduction on Opay, Moniepoint, Others

The Federal Government of Nigeria has commenced the implementation of a N50 Electronic Money Transfer Levy (EMTL) on transactions of ₦10,000 and above, affecting users of financial technology platforms such as Opay, Moniepoint, and Kuda. This levy, introduced under the Finance Act 2020, applies to the recipient of any electronic transfer meeting the stated threshold.

EMTL: What You Need to Know

The EMTL is a one-off tax collected on transfers of ₦10,000 and above, with deductions beginning December 1, 2024, as confirmed by several Fintech companies. Initially slated to start in September, the Federal Inland Revenue Service (FIRS) delayed the rollout to fine-tune the process.

Fintech Platforms Respond to EMTL

Opay clarified in a customer notice that the levy is imposed by the FIRS, emphasizing that the company does not profit from the deductions.

“A one-time N50 charge will be applied to electronic transfers of ₦10,000 and above, paid into personal or business accounts, in line with federal regulations,” Opay stated.

Similarly, Moniepoint informed its users about the deductions, stating:

“You will be charged N50 for transactions above ₦10,000. This levy is collected and remitted directly to FIRS.”

Mixed Reactions from Nigerians

The introduction of the EMTL has sparked criticism from various quarters, including the National Association of Nigerian Students (NANS), which has called for the reversal of the policy. Critics argue that the levy imposes an additional financial burden on citizens already grappling with economic challenges.

Key Highlights:

• The N50 levy applies to electronic receipts or transfers above ₦10,000.
• It is remitted directly to the FIRS by Fintech platforms.
• The levy is not profit-driven for platforms like Opay or Moniepoint.
• Implementation officially began December 1, 2024.

What This Means for Users

If you use Fintech services, you’ll now see a N50 deduction for applicable transactions. While the charge might seem small, its cumulative impact could affect frequent users of these services.

For updates on financial reforms and how they impact your digital transactions, stay connected.