ICYMI: FG enforces N50 levy on transactions above N10,000 through fintech platforms

Estimated reading time: 2 minutes

The Federal Government has commenced the deduction of a N50 Electronic Money Transfer Levy (EMTL) on transactions of N10,000 and above carried out through financial technology (fintech) platforms, including Opay, Moniepoint, Kuda, and others.

Introduced under the Finance Act 2020, the EMTL is a one-time charge imposed on the recipient of any electronic transfer or receipt above the threshold.

Initially slated to begin on September 9, 2024, the levy officially took effect on December 1, 2024, according to recent notifications from fintech operators.

In a prior notice to customers, Opay clarified that the levy was mandated by the Federal Inland Revenue Service (FIRS), stating, “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.”

Reiterating this in a new message shared via its app on Saturday, Opay informed its users, “Dear Customer, in line with the FIRS, the EMTL applies starting from December 1st, 2024.”

ALSO READ

• 5 best digital banks to open for your business account in Nigeria
• Amanda Chisom, Nigerian influencer arrested for alleged N50Bn ponzi scheme
• Subsidy Removal: Kwara Governor okays N10,000 support for students 
• NRTC WEEKLY: Top 5 trending stories across the country this week
• 5 most underrated businesses with high profits in Nigeria

Similarly, Moniepoint has informed its customers about the implementation, explaining the levy will be remitted to the FIRS.

In its message, the company stated, “Dear customer, you will be charged stamp duty of N50 on inflows of N10,000 and above. Moniepoint collects and remits this on behalf and to FIRS.”

The levy has drawn widespread criticism from Nigerians, including the National Association of Nigerian Students (NANS), who have urged the government to reverse the policy.

Despite this opposition, fintech companies have confirmed compliance with the directive, ensuring the N50 deduction is now in effect for qualifying transactions.