EMTL: Nigerian FinTechs begin deduction of N50 levy per transaction above N10,000

*Financial Technology companies announce the FinTech firms will activate deduction of N50 Electronic Money Transfer Levy from every inflow of N10,000 and above received by consumers, effective from Monday, September 9, 2024

Alexander Davis | ConsumerConnect

Moniepoint, OPay, and other Financial Technology (FinTech) companies have announced they will begin a deduction of N50 Electronic Money Transfer Levy (EMTL) from every inflow of N10,000 and above received by consumers, effective from September 9, 2024.

The FinTechs, which states this in a notice issued at the weekend, said that the new charge aligns with a directive from the Federal Inland Revenue Service (FIRS).

ConsumerConnect reports the fiscal policy measure is targeted at generating revenue from electronic transactions in line with FIRS regulations.

According to Opay, a one-time fee of N50 will be applied for electronic transfer of N10,000 and above paid into personal or business accounts, report said.

The FinTech reportedly stated in a message to its customers: “Dear valued customers, please be informed that starting September 9, 2024, a one-time fee of N50 will be applied for electronic transfer of N10,000 and above paid into your personal or business account in compliance with the Federal Inland Revenue Service regulations.

“It is important to note that OPay does not benefit from these charges in any way as it is directed entirely to the Federal Government.”

Likewise, Moniepoint, one of the leading FinTechs in Nigeria, also notified its customers Saturday, and 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.”

It is equally noted that hitherto, several Nigerian consumers of financial products and services had found FinTech companies more attractive because they provide free banking services.

Nonetheless, with this development regarding the mandatory deduction of N50 on a transaction above N10,000 brings to an end the era of free banking services they provide.

The enforcement of the Electronic Money Transfer Levy (EMTL) by the Nigerian government under the Finance Act 2020 mandates a fixed levy of N50 on electronic receipts or transfers of funds, facilitating the collection of revenue to support the country’s fiscal needs.