The Federal Government has begun implementing a N50 Electronic Money Transfer Levy (EMTL) on transactions of N10,000 and above, targeting users of financial technology platforms such as Opay, Moniepoint, and Kuda.
The levy, introduced under the Finance Act 2020, applies as a one-time charge on recipients of electronic transfers above the stated threshold. Initially announced to take effect from September 9, the levy is now active and being enforced by the Federal Inland Revenue Service (FIRS).
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.
As debates continue, the policy underscores the tension between revenue generation efforts and the economic realities facing Nigerians. Whether the levy will remain in its current form or be reconsidered remains to be seen.
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