Starting September 9, 2024, fintech companies such as OPay and Moniepoint will begin deducting the N50 Electronic Money Transfer Levy (EMTL) on all transfers of N10,000 or more. This change follows a directive from Nigeria’s Federal Inland Revenue Service (FIRS) and marks the end of some free banking services previously offered by these companies, although the levy itself goes directly to the federal government.
Customer Notifications
Moniepoint notified its users with a message:
“A N50 fee would be charged on inflows you receive of N10,000 and above from Monday, September 9, 2024. Your BRM is available to answer questions you might have.”
Similarly, OPay informed its customers that the N50 deduction is in compliance with government regulations. The company emphasized that it does not benefit from the charge, as the funds are directed entirely to the federal government.
The EMTL, previously applied only to commercial banks, has now been extended to fintech firms, including Palmpay and Paga. This move aligns with the government’s broader efforts to increase revenue through expanded taxation and levies.
What is EMTL?
The Electronic Money Transfer Levy (EMTL) is a N50 charge on electronic transfers in Nigeria for amounts of N10,000 or more. The following transactions are exempt:
Transfers below N10,000.
Transfers to one’s own account.
Transfers between accounts of the same owner within the same bank.
The EMTL was introduced in the Finance Act of 2020 to encourage electronic transactions and generate revenue for the government. The funds collected from EMTL are shared among the three tiers of government: 15% for the Federal Government, 50% for state governments, and 35% for local governments.
Foreign Currency EMTL Deductions
In December 2023, the FIRS expanded the EMTL to cover foreign currency transactions. Banks began retroactively deducting the levy from foreign currency transfers made between 2021 and 2023.
This expanded levy represents another step in the government’s strategy to increase revenue by taxing electronic transactions across both local and foreign currencies.
