The Federal Government has started enforcing a N50 Electronic Money Transfer Levy (EMTL) on transactions of N10,000 and above, affecting users of financial technology platforms like Opay, Moniepoint, and Kuda.
Recipients of electronic transfers over the specified threshold are subject to the one-time levy, which was implemented under the Finance Act 2020. The Federal Inland Revenue Service (FIRS) is now enforcing the charge, which was first declared to go into effect on September 9.
While the government defends the measure as a means to generate revenue, it has faced significant pushback from Nigerians. Critics argue that the levy adds to the financial burden of citizens already grappling with a high cost of living. Among the dissenters, the National Association of Nigerian Students (NANS) has publicly urged the Federal Government to reverse the policy, citing its adverse impact on the youth and low-income earners.
In a notice to customers, fintech giant Opay clarified that the levy is imposed by FIRS and does not benefit financial service providers. “We are merely implementing the government’s directive and do not retain any portion of the levy,” the company explained.
The EMTL implementation raises broader questions about its impact on the adoption of digital financial services in Nigeria. Analysts warn that additional charges on electronic transactions could discourage users, especially in a country striving for increased financial inclusion.
The policy highlights the conflict between efforts to generate revenue and the economic realities that Nigerians face as discussions continue. It is unclear if the levy will be changed or kept in its current form.
