The federal government has begun deducting N50 electronically from transactions of N10,000 or more made by users of financial technology (Fintech) companies such as Opay, Moniepoint, Kuda, and others.
The levy, known as the Electronic Money Transfer Levy (EMTL), was implemented under the Finance Act 2020 and imposes a one-time levy of N50 on the recipient of any electronic receipt or transfer of N10,000 or more. It was originally scheduled to take effect on September 9, Tribune Online reported.
However, the introduction of the EMTL was met with criticism from Nigerians, with numerous groups, including the National Association of Nigerian Students (NANS), urging the federal government to alter its position on the levy’s adoption.
Opay clarified in a notification given to users earlier in September that the Federal Inland Revenue Service (FIRS) was responsible for the tax, but that it did not profit from it.
“Please be informed that starting September 9, 2024, a one-time 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.
Opay clarified that the electronic levy deduction starts on December 1 in a message distributed to its users on Saturday (which was also shared through its app).
The EMTL costs have also been implemented, according to a message that Moniepoint delivered to its customers on Saturday. It clarified that the tax will be forwarded to the FIRS.
