FG Enforces N50 Levy on Electronic Transfers Over ₦10,000: Here's What You Need to Know
Starting today, December 1, Nigerians will begin paying a ₦50 Electronic Money Transfer Levy (EMTL) on all electronic transfers of ₦10,000 and above, following a directive from the Federal Government. The levy, initially introduced under the Finance Act of 2020, has been expanded to include a wider range of financial institutions, such as mobile money services like Moniepoint, OPay, Palmpay, and Paga.
According to the Federal Inland Revenue Service (FIRS), the ₦50 levy will apply to all qualifying electronic transfers, with a few exceptions. Transfers below ₦10,000, payments into one’s own account, and transfers between accounts owned by the same person within the same bank are exempt from the charge.
Financial service providers, including Moniepoint and OPay, have already begun notifying their customers. In a message sent out to users, Moniepoint explained:
"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 Service (FIRS) on any electronic inflow of ₦10,000 and above."
Similarly, OPay clarified that the charge is entirely directed to the Federal Government and not retained by service providers.
"Please be informed that starting December 1, a one-time fee of ₦50 will be applied to electronic transfers of ₦10,000 and above," OPay noted in its notification. "OPay does not benefit from this charge in any way as it is directed entirely to the Federal Government."
The Federal Government has outlined plans to distribute the proceeds of the EMTL among the three tiers of government. Of the revenue generated, 15% will go to the federal government, 50% to state governments, and 35% to local governments.
This development has sparked conversations among Nigerians, with some expressing concerns over the growing cost of financial transactions in the country.