N50 Electronic Money Transfer Levy (EMTL): Impact on Nigerian Fintech Users, including Opay and Others

The Federal Government of Nigeria has officially commenced the implementation of the Electronic Money Transfer Levy (EMTL), introducing a charge of N50 on electronic transactions of N10,000 and above. This new levy is applicable to transactions facilitated by financial technology (FinTech) platforms such as Opay, Moniepoint, Kuda, and others. Here’s everything you need to know about the levy, its impact, and public reactions.

What is the EMTL?

The EMTL, introduced under the Finance Act 2020, is a one-time N50 charge imposed on the recipient of any electronic receipt or transfer of N10,000 or above. While its implementation was delayed, the Federal Inland Revenue Service (FIRS) has now mandated its enforcement starting December 1, 2024.

How Does the EMTL Work?

According to the directive:

• The N50 deduction is a one-time charge applied per transaction of N10,000 and above.
• The levy is deducted by FinTech platforms and remitted directly to the FIRS.
• FinTech companies, including Opay and Moniepoint, have clarified that they do not benefit from this charge.

For instance, Opay stated:

“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.”

Similarly, Moniepoint notified customers:

“Dear customer, you will be charged stamp duty of N50 on inflows of N10,000 and above. Moniepoint collects and remits this on behalf and to FIRS.”

FinTech Platforms Begin Implementation

Leading FinTech companies have commenced deductions as per the government’s directive. Notifications were sent to users detailing the changes:

• Opay: Announced the levy’s commencement from December 1, 2024.
• Moniepoint: Began charging users during the weekend, emphasizing that the levy is collected and remitted on behalf of the FIRS.

The N50 deduction is now automatically applied to qualifying transactions, affecting both personal and business account holders.

Public Reactions and Concerns

The EMTL’s introduction has drawn significant criticism from Nigerians. Various groups, including the National Association of Nigerian Students (NANS), have opposed the levy, urging the government to reconsider its decision. Critics argue that the levy places an additional financial burden on individuals already grappling with economic challenges.

Key Takeaways for FinTech Users

1. Applicability: The levy applies only to transactions of N10,000 and above.
2. One-Time Deduction: It is a singular charge per eligible transaction.
3. No Platform Benefits: FinTech platforms like Opay and Moniepoint do not profit from the levy as it is fully remitted to the government.
4. Automatic Deduction: Users do not need to manually pay; the charge is automatically applied by the platform.

Implications for Nigeria’s Financial Ecosystem

The EMTL is part of broader government efforts to generate revenue through financial transactions. While its implementation aligns with global trends of taxing electronic payments, its timing and impact on everyday Nigerians remain contentious. FinTech platforms, which have revolutionized financial access in Nigeria, now find themselves as intermediaries for government taxation.

As the Federal Government enforces the EMTL, Nigerians must adapt to the new reality of N50 deductions on electronic transfers of N10,000 and above. While the levy might seem minimal, its cumulative effect could be significant for frequent transactions. Users are encouraged to stay informed and understand how these deductions affect their financial activities.

What are your thoughts on the EMTL? Share your opinions below!