The Federal government of Nigeria has started the N50 e-levy charge on transactions above N10,000 made by customers of Opay, Moniepoint and other fintech users. The levy, Electronic Money Transfer Levy (EMTL) deducts a one-off levy on account of any receipt or transfer above N10,000 by customers of fintech companies such as <a href="https://www.opayweb.com/" target="_blank" rel="noreferrer noopener">Opay</a>, <a href="https://www.palmpay.com/" target="_blank" rel="noreferrer noopener">Palmpay</a>, <a href="https://www.moniepoint.com/" target="_blank" rel="noreferrer noopener">Moniepoint</a>, and others. 
The levy, introduced under the Finance Act 2020, was earlier announced to take effect from September 9. But due to reasons not explained, the development did not take effect. In a new development, fintech companies, Opay, Moniepoint, Palmpay and others notified their customers that the commencement of the N50 EMTL deduction will kick start from December 1, 2024. 
In a statement sent to its customers on Saturday, Moniepoint expressed that it has started the EMTL N50 charges. It then pointed out that the levy would be remitted to the Federal Inland Revenue Services <a target="_blank" href="https://www.firs.gov.ng/" rel="noreferrer noopener">(FIRS</a>). 
“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. 
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 <img loading="lazy" decoding="async" width="750" height="546" src="https://technext24.com/wp-content/uploads/2024/12/EMTL-Opay.jpeg" alt="EMTL levy announcement" class="wp-image-240932">
 <figcaption class="wp-element-caption">
 The announcement of EMTL charge on Opay app
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Opay, one of the most used fintech, also sent a message to its users across its app on Saturday. The company explained that the electronic levy deduction begins on December 1, 2024. “Dear Customer, in line with the FIRS, the EMTL applies starting from December 1st, 2024,” the message reads. 
According to information gathered by Technext, the EMTL implementation has officially taken effect with Fintechs already deducting N50 for the FIRS on transactions of N10,000 and above. 
The EMTL levy, previously applicable only to commercial banks, has now extended to fintech companies which has now ended the era of free banking services that many of these platforms offered. 
<h4 id="an-earlier-statement-on-emtl-and-reactions" class="wp-block-heading">An earlier statement on EMTL and reactions</h4> 
The introduction of the EMTL levy was earlier announced to be implemented by September 9, 2024. In a notice sent to its users on September 7, it was then that Opay first emphasized that the levy was imposed by the Federal Inland Revenue Service (FIRS) with no benefit to the company. 
“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 expressed.&nbsp; 
Following the earlier announcement of the new policy, the National Association of Nigerian Students (NANS) opposed the development. The student body called on the Nigerian government to reverse the policy. 
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 <img loading="lazy" decoding="async" width="1015" height="515" src="https://technext24.com/wp-content/uploads/2023/08/OPay-and-Kuda.jpg" alt="Opay, Kuda and 4 other African companies make CNBC’s top 200 global fintech list" class="wp-image-206880">
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The Senate Clerk of the association, Oladimeji Uthman argued that in terms of revenue generation, the federal government should devise alternative means such as investing in agriculture, quality education, infrastructure development, and job creation, rather than imposing additional financial burdens on students and ordinary citizens. 
For over 40.1 million Nigerian Students, the N50 Electronic Money Transfer Levy (EMTL) will have significant impacts on their banking activities. The majority of students rely on financial transfers for their education and daily expenses and the new levy could significantly reduce the funds available for basic needs such as school fees, textbooks, living expenses, and so on. 
NANS then called on the Federal Government through the FIRS to reconsider the implementation of this levy considering its impact on the education sector. 
<h4 id="nigerians-reactions" class="wp-block-heading">Nigerians’ reactions</h4> 
As widely used, Fintech platforms have been praised for their low-cost and efficient services, making financial transactions more accessible to Nigerians. Likewise, they have also served as alternatives to commercial bank users who have experienced a tough time during their system migration and system disruptions.&nbsp; 
Nigerians have taken to X (formerly Twitter) to express their diverse concerns. 
A user, @phil_Adesh 
“I saw it today I sent money to my Opay and they removed #50.” 
Another @Tunde_tide 
“Very easy to avoid paying the charges, especially those transferring from Opay to Opay. If you want to transfer 30k for example, send 9,500 thrice and 1,500. Don’t pay any unnecessary charges, this government wants to milk us in every way they can.” 
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 <img loading="lazy" decoding="async" width="750" height="300" src="https://technext24.com/wp-content/uploads/2024/12/EMTL.jpeg" alt="EMTL deduction" class="wp-image-240933">
</figure> 
Also, @Archibo28808321 
“Is really affecting us the pos operators, you charge customers 300 naira for withdrawal and transfer, then they will charge 170 in total. The charge for withdrawing 100, charge Levy 50. And change the transfer back 20. Total 170. U left with 130.” 
Another user, @gwaniforlife 
“It’s not that I don’t want to pay my tax, but my concern lies on how the collected taxes are being utilized. In this country, we are the ones providing most of our basic needs, including water, electricity, healthcare, education, and security.” 
Also Read: <a target="_blank" href="https://technext24.com/2024/11/26/vp-shettima-tasks-moniepoint-audit-fraud/" rel="noreferrer noopener">VP Shettima tasks Moniepoint, other fintechs on stronger audit to tackle fraud and criminal misuse.</a>

Federal Government commences N50 e-levy tax on Opay, Palmpay, Moniepoint users

Technext.ng

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