The federal government has officially begun the deduction of the N50 Electronic Money Transfer Levy (EMTL) from transactions of N10,000 and above, processed by users of financial technology (Fintech) companies such as Opay, Moniepoint, Kuda, and others.
The levy, introduced under the Finance Act 2020, applies to recipients of electronic transfers of N10,000 or more and was set to be implemented from September 9, 2024. However, its commencement was delayed until December 1, 2024.
The N50 levy is a one-time charge on any electronic receipt or transfer of N10,000 and above and is aimed at improving the government’s revenue collection from electronic transactions. The levy is directly imposed by the Federal Inland Revenue Service (FIRS), and the fintech companies, including Opay and Moniepoint, have clarified that they do not benefit from the charges.
In an earlier notice sent to customers in September, Opay informed its users that the N50 charge was part of the FIRS regulations.
“Please be informed that starting September 9, 2024, a one-time of N50 will be applied to electronic transfers of N10,000 and above paid into your personal or business account in compliance with the Federal Inland Revenue Service (FIRS) regulations. 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,” the company explained.
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On Saturday, December 1, 2024, the fintech companies officially commenced the deduction of the EMTL, with Opay informing its users via a message stating, “Dear Customer, in line with the FIRS, the EMTL applies starting from December 1st, 2024.”
Moniepoint, another major fintech company, also sent a similar notice to its customers on Saturday, confirming that the N50 levy had begun. The notice read, “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 introduction of the EMTL has faced opposition from various groups, including the National Association of Nigerian Students (NANS), which has called on the federal government to reverse its decision to implement the levy. Nonetheless, the levy is now officially in effect, with fintech companies actively deducting N50 for the government on all eligible transactions of N10,000 or more.
