The leading fintech companies Opay and Moniepoint have announced the implementation of a N50 fee on electronic money transfers exceeding N10,000, in a move compliant with Federal Inland Revenue Service (FIRS) regulations
Penpushing reports that two of Nigeria’s prominent fintech companies, communicated the change to their customers through a message titled “FGN Electronic Money Transfer levy,” which began circulating on Saturday, while the new charge is set to take effect on September 9,2024, applies to both personal and business accounts.
“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 announcement said.
Penpushing further reports that the N50 fee is a one-time charge that will be applied to each eligible transfer in line with the government’s directive, and this development follows the enforcement of the Electronic Money Transfer Levy (EMTL), a tax introduced by the Nigerian government under the Finance Act 2020.
The Electronic Money Transfer Levy (EMTL), mandates a fixed levy of N50 on electronic receipts or transfers of funds, facilitating the collection of revenue to support the country’s fiscal needs, while the tax is levied on transactions processed through any money transfer or payment system and applies to amounts of N10,000 or more.
Penpushing also reports that the levy is part of broader efforts by the government to diversify its revenue sources amid growing need to finance public services and infrastructure projects, just as record has it that in recent times, Nigerians and business owners have increasingly turned to neobanks due to their reliability and efficiency.
These platforms are favoured for their lower-than-average transaction decline rates and the ability to instantly reverse transactions in the event of failed payments, and a key attraction has been their low transaction fees, which have provided much-needed relief, particularly during the recent cash crunch.
Penpushing reports that in view of this many businesses opened accounts with these fintech companies, assured of receiving immediate transaction alerts, which became crucial for maintaining cash flow and ensuring smooth operations in a challenging economic environment, just as record showed that recently, Moniepoint was listed as Africa’s fastest-growing fintech company by the Financial Times.
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