Point-of-Sale (POS) operators have increased their transaction fees in response to the Federal Inland Revenue Service’s (FIRS) enforcement of the ₦50 Electronic Money Transfer Levy (EMTL) on electronic inflows of ₦10,000 and above.
Fintech platforms over the weekend informed customers of the levy’s implementation, aligning with the Federal Government’s Stamp Duty Act. The levy, introduced under the Finance Act 2020, aims to generate additional revenue.
Moniepoint, in a customer notice, explained that the ₦50 levy applies to electronic inflows of ₦10,000 or more, except transfers between Moniepoint accounts owned by the same user. The message emphasized that the platform does not benefit from the levy, as the amount is remitted to FIRS.
PalmPay similarly notified its users, stating, “In accordance with the Electronic Money Transfer Levy regulation, a ₦50 levy will be charged on transfers of ₦10,000 or more starting November 30, 2024.” The message reiterated that the charge is directed to the federal government.
OPay also alerted its customers, stating that the EMTL would take effect from December 1, 2024.
POS operators have begun adjusting their transaction fees to accommodate the levy.
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Increased Fees: Operators in Ogun and Lagos States reported raising charges by ₦100 to ₦200 for transactions above ₦10,000. For instance, a withdrawal of ₦10,000 now costs between ₦300 and ₦400.
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Cash Scarcity: Many operators attributed the fee hike to challenges in sourcing cash, with some purchasing cash at a premium from market vendors.
A POS operator in Yaba, Ondo State, shared, “We now have to pay for cash, which has reduced our profit margin. This has forced us to increase transaction fees.”
The levy has sparked widespread criticism on social media.
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A user on platform X, Sam Addai, called the levy “one of the most obnoxious taxes,” arguing it penalizes digital transactions.
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Another user, 6xstem, described the levy as “robbery in broad daylight,” accusing the government of indirect exploitation.
POS customers also voiced frustration over additional charges, with some accusing operators of using the levy as an excuse to inflate fees.
Economists have warned that the levy could stifle the growth of Nigeria’s fintech industry and discourage digital transactions.
Marcel Okeke, a former chief economist at Zenith Bank, argued that the levy might lead to the “demonetization” of the economy by driving consumers away from digital platforms. “Targeting digital transactions in this way is counterproductive, especially for a rapidly growing fintech sector,” Okeke cautioned.History of the Levy.
The EMTL was initially implemented in September but postponed after public backlash. Its reintroduction in December has reignited debates about the government’s taxation policies, with many citizens questioning the lack of transparency and accountability in the use of public funds.
The levy’s full impact on consumer behavior, fintech operations, and the broader economy remains to be seen.
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