Several fintech companies, including OPay and Moniepoint, have announced that they will start deducting a N50 Electronic Money Transfer Levy (EMTL) from inflows of N10,000 and above starting September 9, 2024. This new charge complies with the Federal Inland Revenue Service (FIRS) directive.
Customer Notifications
Moniepoint: Moniepoint notified its customers via a notification stating, “A N50 fee will 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.”
OPay: OPay also clarified to its customers: “Please be informed that starting September 9th, 2024, a one-time fee 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. It is important to note that OPay does not benefit from this charge in any way as it is directed entirely to the Federal Government.”
The EMTL, previously applicable only to commercial banks, is now extended to all fintech companies including Palmpay and Paga. This move is likely part of the federal government’s strategy to increase revenue by expanding taxes and levies.
What You Need to Know
- EMTL Overview: The Electronic Money Transfer Levy (EMTL) is a one-time charge of N50 on electronic money transfers or receipts. It applies to all electronic transfers of funds in Nigerian-licensed banks or financial institutions, with some exceptions:
- Transfers under N10,000
- Money paid into one’s own account
- Money is transferred electronically between accounts of the same owner within the same bank
- Revenue Allocation: Revenue from the EMTL is distributed among the three tiers of government as follows:
- Federal Government: 15%
- State Governments: 50%
- Local Governments: 35%
- Recent Developments: In December 2023, the FIRS directed banks to deduct and remit the EMTL on foreign currency transactions. Previously, the charge applied only to local currency transactions. Banks began applying this charge on old foreign currency transactions from 2021 to 2023 earlier this year.
This expansion of the EMTL to fintech platforms reflects a broader government effort to enhance revenue collection through taxation.
