News Highlights:
- Starting Monday, September 9, 2024, fintech companies like OPay, Moniepoint, Palmpay, and Paga will begin deducting a N50 Electronic Money Transfer Levy (EMTL) for every inflow of N10,000 and above.
- This move, in compliance with the Federal Inland Revenue Service (FIRS) directive, marks the end of the free banking services previously offered by some fintechs.
OPay and other fintech companies will on Monday, September 9, 2024, commence the deduction of N50 Electronic Money Transfer Levy (EMTL) from every inflow of N10,000 and above received by their customers.
The fintech companies said the deduction is in compliance with the Federal Inland Revenue Service (FIRS) directive.
Digital TimesNG understands that this mandatory deduction brings to an end, an era of free banking services that some of the fintech companies provide, even though the charges go to the federal government.
In a short message contained in an email circulated to its customers on Saturday, and titled: ‘FGN Electronic Money Transfer Levy’ OPay stated:
“Dear Valued Customer,
“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.
“It is important to note that OPay does not benefit from this charge in any way as it is directed entirely to the Federal Government.”
Uuntil now, the EMTL applied to only commercial banks but has now been extended to all fintechs including Moniepoint, Palmpay, Paga, among others.
Observers say this extension may not be unconnected with moves by the federal government to shore up its revenue through the expansion of taxes and levies.
The Electronic Money Transfer Levy (EMTL) is a one-time charge of N50 on electronic money transfers or receipts in Nigeria.
It applies to all electronic transfers of funds in a Nigerian-licensed bank or financial institution, with the following exceptions: Transfers under N10,000; Money paid into one’s own account; and Money transferred electronically between accounts of the same owner within the same bank
The EMTL was introduced in the Finance Act 2020 to encourage the growth of electronic funds transfers in Nigeria. Revenue from the EMTL is shared among the three tiers of government.
Revenue derived from the EMTL is shared among the three tiers of government based on derivation, with the Federal Government receiving 15%, state governments receiving 50% and local governments getting 35%.