Money Transfer Levy: Opay To Charge Customers N2bn Daily, N60bn Monthly

A Fintech bank, OPay is set to charge N50 Electronic Money Transfer Levy (EMTL) from every inflow of N10,000 and above received by their customers starting from September 9.

We learnt, translates to about N2billion daily, considering its about 40million customers  nationwide made a minimum transaction of at least N10,000 daily. In a month, however, this translates to N60billion, according to  check.

While this is regarded as additional burden on Nigerians who prefer fintech banks because of their pocket friendly charges, the new deduction introduced will further pinch its customers who are seemingly caught unaware about the development, as it will eat into their profits, especially, for those who does big ticket transactions with Opay.

Although, the money is expected to be handled over to the federal government through the the Federal Inland Revenue Service (FIRS), customers are embittered about the development that equally affects Moniepoint, and others fintech banks operating on the shores of the country.

Yesterday, however, OPay said to its customers that the deduction is for EMTL as directed by the federal government, adding that, “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.”

Similarly, in a short notification to its customers today, Moniepoint said:

“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.”

The EMTL was introduced in the Finance Act 2020 to encourage the growth of electronic funds transfers in Nigeria. Revenue from the EMTL is shared among the three tiers of government.

Revenue derived from the EMTL is shared among the three tiers of government based on derivation, with the Federal Government receiving 15%, state governments receiving 50% and local governments getting 35%.

In December 2023, the FIRS also directed deposit banks to deduct and remit the EMTL on foreign currency (FCY) transactions going forward. Before that time, N50 charge on transactions from above N10,000 was only applicable to local currency transactions in deposit money banks.