Outrage as Opay, Palmpay, others begin N50 deduction on transactions above N10,000
Nigerian fintech companies, including Opay, Moniepoint, and Palmpay, have commenced the deduction of the N50 Electronic Money Transfer Levy (EMTL) on transactions above N10,000.
The announcement, which took effect on December 1, 2024, has sparked widespread backlash from customers, who argue that the levy further burdens already strained finances.
Many fintech users took to social media platforms to express frustration, accusing the government and fintech firms of imposing hidden charges. A customer on Twitter lamented:
“This is unfair! One of the reasons I switched to fintech platforms was to avoid the exorbitant charges from traditional banks. Now they are following the same path.”
“Adding N50 to every transaction above N10,000 might seem small, but for small business owners who make multiple transactions daily, it quickly becomes a significant cost.”
Contrary to public perception, the EMTL is not new. It was introduced by the Federal Government through the Federal Inland Revenue Service (FIRS) as part of the Stamp Duty Act. Traditional banks have been applying the levy for years, but fintech firms had not enforced it until now.
In a statement issued on Sunday, Opay explained: “Dear Customer, in line with the FIRS directive, the EMTL applies starting December 1, 2024. It is important to note that Opay does not benefit from this charge as it is remitted entirely to the federal government.”
Similarly, Moniepoint informed users:”In compliance with the Federal Government Stamp Duty Act, you will be charged an EMTL of N50 on electronic inflows of N10,000 and above. Moniepoint does not benefit from this levy but remits it to the FIRS.”
The EMTL is projected to generate substantial revenue for the Federal Government. Data from the Nigeria Inter-Bank Settlement System (NIBSS) reveals over 219.6 million active bank accounts as of March 2024.
The government accrued N103.7 billion from the levy in the first half of 2024 alone, and analysts predict additional billions will be generated as fintech adoption grows.
Analysts note that while the levy is an important revenue stream for the government, its enforcement by fintech firms could lead to reduced transaction volumes on these platforms.
“This move might push some users to alternative payment systems or back to cash transactions,” said financial analyst Bola Adetayo.
Still, the government defends the levy, arguing that it supports critical national infrastructure and reduces dependence on borrowing.
However, customers continue to demand better communication, improved financial transparency, and relief from what they perceive as excessive taxation.
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