The  President Bola Tinubu-led Federal Government on Sunday directed all Nigerian Banks, Moniepoint, Opay and others financial services to start deducting N50 from Nigerians as Electronic Money Transfer Levy.


Fintech companies including OPay, Moniepoint, and others in  notifications to explained that the  deduction of N50 Electronic Money Transfer Levy (EMTL) from every inflow of N10,000 and above received by  customers takes effect December 1. 


The fintech companies, explained that the deduction is in accordance with the Federal Inland Revenue Service (FIRS) directive.  The  mandatory deduction brings to an era of free banking services provided by the fintechs provide


Moniepoint in a short notification to its customers on Sunday,  States: : Dear Customer, Please be informed that in compliance with the Federal Government Stamp Duty Act, you will be charged an Electronic Money Transfer Levy (EMTL) of ₦50 by the Federal Inland Revenue Services (FIRS) on any electronic inflow of ₦10,000 and above. 


OPay, equally sent  similar messages:  “Please be informed that starting September 9th, 2024, a one-time fee of N50 will be applied to electronic transfers of N10,000 and above paid into your personal or business account in compliance with the Federal Inland Revenue Service (FIRS) regulations. The message added: “It is important to note that OPay does not benefit from this charge in any way as it is directed entirely to the Federal Government,” the company wrote.


 The EMTL, a one-time charge of N50 on electronic money transfers or receipts in Nigeria. It applies to all electronic transfers of funds in a Nigerian-licensed bank or financial institution,   until now applied to only commercial banks has now been extended to all fintechs.  This extension may not be unconnected with moves by the Federal Government's ambition to shore up its revenue through the expansion of taxes and levies.  Transfers under N10,000 Money paid into one’s own account Money transferred electronically between accounts of the same owner within the same bank are excluded from the levy 


The EMTL was introduced in the Finance Act 2020 to encourage the growth of electronic funds transfers in Nigeria. Revenue from the EMTL is shared among the three tiers of government. Revenue derived from the EMTL is shared among the three tiers of government based on derivation, with the Federal Government receiving 15%, State governments receiving 50% and local governments getting 35%. In December last year, the FIRS also directed deposit banks to deduct and remit the EMTL on foreign currency (FCY) transactions.