In a recent update, fintech companies have informed their customers that the N50 Electronic Money Transfer Levy (EMTL) deduction has officially commenced as of December 1, 2024.
Opay, in a notification sent to its users on Saturday (also available via its app), confirmed the start of the EMTL charges, stating, “Dear Customer, in line with the FIRS, the EMTL applies starting from December 1st, 2024.”
Similarly, Moniepoint also sent out a notice to its customers on Saturday, explaining that the EMTL charges have been implemented. The notice clarified that the levy will be remitted directly to the Federal Inland Revenue Service (FIRS). “Dear customer, you will be charged a stamp duty of N50 on inflows of N10,000 and above. Moniepoint collects and remits this on behalf of FIRS,” the message reads.
Other fintech platforms, including Palmpay, have sent similar notifications to their customers.
The implementation of the EMTL is now in effect, with fintech companies already deducting the N50 levy on transactions of N10,000 or more for remittance to the federal government.
The EMTL, a one-off N50 charge, applies to electronic money transfers or receipts for amounts of N10,000 and above, deposited in any commercial bank or financial institution. This charge is part of Nigeria’s evolving tax system, introduced to boost government revenue. The Finance Act 2019 amended various tax and fiscal regulations, including the Stamp Duty Act, to incorporate the EMTL.
In December 2023, the Federal Inland Revenue Service (FIRS) directed that the levy should also apply to foreign currency (FCY) transactions. By mid-2024, N78.95 billion had been collected from the N50 levy on electronic transfers.
According to regulations, the receiving bank is required to deduct and remit the levy to the FIRS by the next working day after the transaction or on any date specified by the FIRS. If the recipient is a walk-in customer without a bank account, the levy must be deducted from the transfer amount.
The Central Bank of Nigeria (CBN) has projected a further decline in cash usage by 2025, which is expected to accelerate the shift to digital payment channels.
