FG begins deductions of N50 electronic levy from users of fintechs in Nigeria

The deductions of N50 levy from transactions of N10,000 and above made by users of financial technology (Fintech) companies, including Opay, Moniepoint, Kuda, and others have been commenced by the Federal Government.

The deduction, referred as Electronic Money Transfer Levy (EMTL) and introduced under the Finance Act 2020, places a singular and one-off levy of N50 on the recipient of any electronic receipt or transfer of N10,000 or above, was earlier announced to take effect from September 9.

The announcement had met with strict opposition from Nigerians. Various groups including the National Association of Nigerian Students (NANS) called on the federal government to reverse its position on the implementation of such levy.

Opay had sent notice its users of the levy back then in September, stating that the levy has been forced by the Federal Inland Revenue Service (FIRS), and that it has no derivable benefit from it.

In the notice, Opay stated: “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.”

However, in a recent development, the fintech companies have again notified their customers that the implementation of the N50 EMTL deduction has commenced from December 1, 2024.

“Dear Customer, in line with the FIRS, the EMTL applies starting from December 1st, 2024,” Opay stated in a message sent to its users on Saturday (also shared via its app).

Likewise, Moniepoint in a notice sent to its customers on Saturday, explained that it has commenced implementation of the EMTL charges, clarifying however that the levy will be remitted to the FIRS.

“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,” Moniepoint says.

Meanwhile, our correspondent also gathered that the EMTL implementation has officially taken effect with Fintechs already deducting N50 for the federal government on transactions of N10,000 and above.