Federal Government Begins N50 Levy on Fintech Transactions Above N10,000

The federal government has officially started deducting a N50 electronic levy (Electronic Money Transfer Levy or EMTL) from transactions of N10,000 and above made through financial technology (Fintech) platforms such as Opay, Moniepoint, Kuda, and others.

Introduced under the Finance Act 2020, the EMTL imposes a one-time levy of N50 on recipients of electronic transfers or receipts of N10,000 or more. This levy was initially scheduled to take effect on September 9, 2024, according to Tribune Online, but the rollout has now begun in December.

The introduction of the EMTL has sparked opposition from various groups, including the National Association of Nigerian Students (NANS), who have called for the government to reconsider its decision.

Earlier in September, Opay informed its customers about the new levy, explaining that it was imposed by the Federal Inland Revenue Service (FIRS) and stating that the company itself would not benefit from the charge. Opay clarified that the N50 levy would apply to electronic transfers of N10,000 and above and would be remitted directly to the FIRS.

The company further emphasized, “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.”

In recent updates, fintech companies, including Opay and Moniepoint, have notified their customers that the N50 levy is now being enforced.

Opay sent a message to users confirming that the levy began on December 1, 2024: “Dear Customer, in line with the FIRS, the EMTL applies starting from December 1st, 2024.”

Similarly, Moniepoint issued a notice to its customers, explaining that the levy applies to inflows of N10,000 and above and will be collected and remitted to the FIRS. “Dear customer, you will be charged a stamp duty of N50 on inflows of N10,000 and above. Moniepoint collects and remits this on behalf of FIRS,” the message stated.