Fintech companies in Nigeria, including OPay, Moniepoint, and others, have notified their customers that they will begin deducting a N50 Electronic Money Transfer Levy (EMTL) on every inflow of N10,000 and above starting from September 9, 2024. This directive follows a Federal Inland Revenue Service (FIRS) mandate.
The fintech firms clarified that this mandatory deduction is in compliance with federal regulations, signaling the end of the era of free banking services previously provided by many of these platforms. The N50 charge will be remitted directly to the federal government, not the fintech companies.
Moniepoint, in a brief message to its customers on Saturday, confirmed the new charges. It stated, “A N50 fee would be charged on inflows you receive of N10,000 and above from Monday, September 9, 2024. Your BRM is available to answer questions you might have.”
Similarly, OPay informed its users that the levy is a requirement set by the FIRS. The company emphasized that it does not benefit from the fee, which is strictly for the federal government. OPay’s statement read, “Please be informed that starting September 9th, 2024, a one-time fee 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.”
The EMTL, initially applicable only to commercial banks, has now been extended to include all fintech platforms such as Palmpay and Paga. This expansion is part of the federal government’s efforts to increase revenue through taxes and levies.
The Electronic Money Transfer Levy (EMTL) applies to all electronic transfers of N10,000 and above, except for transfers under N10,000, money paid into one’s own account, and transfers between accounts of the same owner within the same bank. Introduced in the Finance Act 2020, the levy aims to promote electronic funds transfers.
Revenue from the EMTL is distributed among the three tiers of government, with the federal government receiving 15%, state governments 50%, and local governments 35%. This system of sharing is based on the principle of derivation.
In addition to local currency transactions, the FIRS last year extended the EMTL to cover foreign currency transfers. Banks began deducting the levy on foreign currency transactions from 2021 to 2023, as directed by the tax regulator. This move further highlights the government’s push to widen its tax base.