- The commencement of the N50 Electronic Money Transfer Levy (EMTL) has attracted a myriad of directions
- The development came as fintech firms such as Opay, Palmpay, Moniepoint, and others began the EMTL charge this month
- However, some transactions are exempted from the EMTL charges, including transfers under N10,000 and those within the same financial institution
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Nigerians have reacted to the commencement of the N50 Electronic Money Transfer Levy (EMTL) on transactions in financial technology companies such as Opay, Palmpay, Moniepoint, and others.
The fintech firms notified users on Sunday, December 1, 2024, that the charges would commence on Monday, December 2, 2024.
Credit: OPAY
Source: Facebook
PoS operators hike charges
Legit.ng earlier reported that the companies had scheduled to begin the new charges on September 9, 2024, but was delayed due to outcry among Nigerians.
According to company messages, the EMTL is a one-off N50 charged on every transaction from N10,000 and above.
The EMTL was ordered by the Federal Inland Revenue Service (FIRS) on behalf of the Nigerian government and aligns with the 2020 Finance Act.
Fintech platforms disclosed that the move complies with the Nigerian Stamp Duty Act, asking them to charge N50 for every N10,000 and above on the recipient’s accounts
This development has led Point of Sale (PoS) operators to increase their charges, as they say the new directive has impacted them.
They reveal that any money sent into their accounts would attract N75 extra charge as the EMTL would also be charged to their accounts.
According to them, when they receive money from anyone on behalf of their customers, they will incur an N50 EMTL charge, making them liable for the electronic transfer charges.
Types of transactions exempted from EMTL charges
They disclosed that they have to factor the EMTL into their charges to make a profit.
Meanwhile, some transactions are exempted from the EMTL charges.
According to the 2023 Finance Act, transfers under N10,000 and below and accounts within the same financial institutions are exempted from the EMTL charge.
Collecting and remitting the Levy involves financial institutions collecting the levy on each qualifying electronic transfer, and remission is expected to be made to FIRS within the stipulated time.
FG orders fintechs to start N50 deductions
Legit.ng previously reported that fintech companies such as Moniepoint, Palmpay, and others had begun informing their customers about plans to implement the N50 EMTL.
This deduction would apply to every inflow of N10,000 or more received by customers starting Monday, September 9, 2024.
According to the fintech companies, this deduction is in accordance with the Federal Inland Revenue Service (FIRS) directive.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
Source: Legit.ng
