Nigeria has commenced the deduction of a N50 electronic levy on transactions of N10,000 and above. The levy, officially known as the Electronic Money Transfer Levy (EMTL), was introduced under the Finance Act 2020.
Policy Details
The EMTL applies as a one-off charge of N50 on the recipient of any electronic receipt or transfer of N10,000 or more. Initially scheduled to take effect from September 9, its implementation has now officially begun as of December 1, 2024.
Notifications from Fintech Companies
Leading fintech companies have begun notifying their customers about the deductions. Opay, in a message sent to users on Saturday, stated that the electronic levy deduction is effective from December 1. Similarly, Moniepoint issued a notice clarifying its role in collecting and remitting the levy to the Federal Inland Revenue Service (FIRS).
“Dear customer, you will be charged stamp duty of N50 on inflows of N10,000 and above. Moniepoint collects and remits this on behalf and to FIRS,” read the statement from Moniepoint.
Implementation and Compliance
The levy is expected to generate significant revenue for the government while ensuring compliance through fintech platforms. Customers have been advised to prepare for the deductions on applicable transactions.
This development underscores the government’s effort to streamline taxation in the digital financial ecosystem and expand its revenue base, though it has sparked varying reactions from stakeholders and users.
