The Federal Government has commenced the deduction of a N50 electronic levy on transactions of N10,000 and above made through financial technology (Fintech) companies, including Opay, Moniepoint, and Kuda.
Persecondnews reports that this move is part of the government’s efforts to generate revenue from electronic transactions, as introduced under the Finance Act 2020.
The Electronic Money Transfer Levy (EMTL) is a one-off levy of N50 on the recipient of any electronic receipt or transfer of N10,000 or above.
Fintech companies such as Opay, Moniepoint, and Kuda have already begun notifying their customers about the implementation of the EMTL deduction, which took effect on December 1, 2024.
Opay, in a message sent to its users, explained that the electronic levy deduction begins on December 1, in line with the Federal Inland Revenue Service (FIRS) regulations.
Moniepoint also sent a notice to its customers, stating that it has commenced implementation of the EMTL charges, which will be remitted to the FIRS.
The introduction of the EMTL was met with opposition from Nigerians, with various groups calling on the federal government to reverse its position on the implementation of the levy.
However, the government has pushed forward with the implementation, aiming to generate revenue from the growing volume of electronic transactions in the country.
The EMTL is expected to bring in significant revenue for the government, with the Nigeria Inter-Bank Settlement Systems (NIBSS) reporting that licensed mobile money operators processed N46.91 trillion in 2023.
The levy is also seen as a way to increase transparency and accountability in electronic transactions.
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