Nigerian Government Imposes Electronic Money Transfer Levy on Fintech Users

Customers of popular fintech platforms like Opay, Moniepoint, and Kuda are expressing frustration over the enforcement of the Electronic Money Transfer Levy (EMTL) on their transactions. The levy, which came into effect today, imposes a ₦50 charge on all electronic transfers of ₦10,000 and above, a practice already implemented by Deposit Money Banks (DMBs).

Introduced under the Finance Act 2020, the EMTL places a one-time levy of ₦50 on the recipient of any electronic receipt or transfer exceeding ₦10,000. DMB account holders have long been subject to this levy, prompting some to switch to fintech platforms in hopes of avoiding the charges. However, this option has now been closed off as the federal government expands the levy to include fintech transactions.

Over the weekend, several fintech companies informed their customers that the new charges would take effect today. In their communications, the fintech firms emphasized that they are merely complying with the Federal Inland Revenue Service (FIRS) regulations and do not benefit from the levy.

In a notice to customers, Opay explained, “Starting September 9, 2024, a one-time charge of ₦50 will be applied to electronic transfers of ₦10,000 and above into your personal or business account, in compliance with FIRS regulations. Please note that Opay does not benefit from this charge, as it is mandated entirely by the federal government.”

The government’s decision to extend the levy to fintech users is part of a broader effort to increase revenue collection, further narrowing the options for individuals seeking to avoid these charges.