The Federal Government has commenced N50 electronic levy deductions from transactions of N10,000 and above made by users of financial technology (Fintech) companies in the country. The fintech companies include Opay, Moniepoint, Kuda, and others.
The levy, called Electronic Money Transfer Levy (EMTL), was introduced under the Finance Act 2020. It places a singular and one-off levy of N50 on the recipient of any electronic receipt or transfer of N10,000 or above.
Recall that the Federal Inland Revenue Services, FIRS, had earlier announced that the ley would take effect from September 9, 2024.
However, the introduction of the EMTL was met with opposition from Nigerians, especially the National Association of Nigerian Students, NANS. The various groups called on the Federal Government to revise its position on the implementation of the levy.
Meanwhile, in a notice sent to customers earlier in September, Opay explained that the levy was imposed by the Federal Inland Revenue Service (FIRS). It pointed out, however, that it did not benefit from it.
The statement read, “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,” Opay explained in its earlier notice.
However, on Saturday, the fintech companies sent out notifications to their customers on the implementation of the N50 EMTL deduction. They informed that the deduction has commenced from December 1, 2024.
Opay, in a message sent to its users on Saturday (also shared via its app), explained that the electronic levy deduction begins on December 1.
It read, “Dear Customer, in line with the FIRS, the EMTL applies starting from December 1st, 2024.”
In the same vein, Moniepoint sent messages to its customers on Saturday. Moniepoint explained that it has commenced implementation of the EMTL charges. Clarifying, however, that the levy will be remitted to the FIRS.
It read, “Dear customer, you will be charged stamp duty of N%) on inflows of N10,000 and above. Moniepoint collects and remits this on behalf and to FIRS.”
It has also been gathered that the EMTL implementation has officially taken effect across all the Fintechs companies. Customers have already experiencing deduction of N50 for the Federal Government on transactions of N10,000 and above.
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