- The Nigerian government has begun deductions of N50 electronic transfer levy (EMTL) on transactions made on fintech platforms
- The fintech platforms such as Opay, Palmpay, Moniepoint and others notified their customers that the charges began on December 1, 2024
- The EMTL charges was scheduled to commence on September 9, 2024, but was delayed due to opposition from Nigerians
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian government has begun deducting the N50 electronic transfer levy (EMTL) from transactions of N10,000 and above made by fintech firm users.
The fintech firms include Opay, Moniepoint, Palmpay, Kuda Bank, and other digital payment platforms.
Credit: Opay.
Source: Facebook
Nigerians oppose EMTL on fintech platforms
The Nigerian government introduced the EMTL under the 2020 Finance Act. It imposed a single, one-off levy of N50 or above on electronic transfer transactions made by banks and other financial institutions.
Legit.ng earlier reported that the levy was scheduled to begin on September 9, 2024.
Charging the EMTL on transactions on fintech platforms was met with opposition from Nigerians with groups, including the National Association of Nigerian Students (NANS), asking the government to reverse the plan.
Meanwhile, the platforms, including Opay, sent notices to users explaining that the Nigerian government imposed the levy and not the fintech companies.
Opay, Palmpay and others notify users
According to reports, in a notice sent to customers in September, Opay disclosed that the Nigerian government imposed the levy via the Federal Inland Revenue Service (FIRS).
Opay said:
“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.”
However, in a recent development, Opay and other platforms notified customers that implementing the EMTL charges began effective December 1, 2024.
Opay stated in an in-app message on Saturday, November 30, 2024, that the levy would be charged as directed by the Nigerian government.
“Dear Customer, in line with the FIRS, the EMTL applies starting from December 1, 2024,” the message reads.
Opay sends messages to customers on funds in their accounts
Legit,ng earlier reported that Opay, a leading financial services provider in Nigeria, has reassured its customers regarding the security of their funds.
In a statement on its X account on Tuesday, April 30, 2024, the bank said it’s committed to fighting illegal financial activities in the country.
Nigerians on social media have expressed mixed feelings about the directives by the CBN mandating bank account holders to link their accounts to Bank Verification Numbers (BVNs) and National Identity Numbers (NINs) for all bank transactions.
Source: Legit.ng
