Fintech Companies to Begin Deduction of N50 Electronic Money Transfer Levy (EMTL) From September 9
1 min read
Several fintech companies, including OPay, Moniepoint, amongst others, have informed their customers about the upcoming deduction of the N50 Electronic Money Transfer Levy (EMTL) on all inflows of N10,000 and above starting September 9, 2024. This levy, as directed by the Federal Inland Revenue Service (FIRS), will apply to both personal and business accounts.
In their notifications to customers, fintechs emphasized that the levy is not a profit-making venture for them but a directive from the government. OPay reassured users, saying, “OPay does not benefit from this charge in any way as it is directed entirely to the Federal Government.” Moniepoint and PalmPay issued similar statements, stressing that they remain committed to providing free transfers apart from the mandatory levy.
The EMTL, introduced in the Finance Act 2020, previously applied only to commercial banks but has now been extended to fintech companies like Palmpay and Paga. The levy is aimed at expanding government revenue and is shared across the three tiers of government—15% to the Federal Government, 50% to state governments, and 35% to local governments.
Certain transactions are exempt from this levy, including transfers below N10,000, money paid into one’s own account, and transfers between accounts of the same owner within the same bank.
This development marks a shift away from the era of free banking services that many fintechs provided, even though the charges are not retained by the companies themselves but go directly to the federal government.
About The Author
