FG Directs Banks and Fintechs to Begin N50 Deduction on Transfers from Today

A new electronic money transfer levy (EMTL) takes effect today, December 1, as the Federal Government orders all banks and financial service providers, including Moniepoint, OPay, and others, to begin deducting N50 from every electronic transfer of N10,000 and above.

The levy was introduced under the Finance Act of 2020 but will now apply to a broader range of financial institutions, including mobile money services like Palmpay, Paga, and others.

The N50 charge will be applied to all electronic transfers, with a few exceptions such as transfers under N10,000, payments into one’s own account, and transfers between accounts of the same owner within the same bank.

In a message to its customers, Moniepoint notified users that the N50 fee would be deducted in compliance with the Federal Inland Revenue Service (FIRS) directive.

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“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,” Moniepoint’s notice read.

Similarly, OPay has clarified that it will not benefit from the charge, stating that the N50 fee is directed entirely to the Federal Government.

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“Please be informed that starting December 1, a one-time fee of N50 will be applied to electronic transfers of N10,000 and above,” OPay wrote in its notification to users. “OPay does not benefit from this charge in any way as it is directed entirely to the Federal Government.”

The federal government plans to share the proceeds of the levy between the three tiers of government, with 15% allocated to the federal government, 50% to state governments, and 35% to local governments.