
The Federal Government of Nigeria has mandated a N50 Electronic Money Transfer Levy (EMTL) on all inflows of N10,000 or more in a major move to bolster revenue from electronic transactions.
This levy, effective from September 9, 2024, applies to customers of various fintech companies, including prominent players like Opay and Moniepoint.
The directive, issued in compliance with the Federal Inland Revenue Service (FIRS) regulations, was communicated to customers through notifications from the affected fintech companies.
Opay, for instance, informed its users, "Dear valued customers, please be informed that starting September 9, 2024, a one-time fee of N50 will be applied for electronic transfers of N10,000 and above paid into your personal or business account in compliance with the Federal Inland Revenue Service regulations."
The company emphasized that these charges are a government requirement and not a source of revenue for the payment platform, stating, "It is important to note that OPay does not benefit from these charges in any way as it is directed entirely to the Federal Government."
Similarly, Moniepoint notified its customers about the impending charges, reinforcing the government's stance on the new levy. The implementation of this levy follows the Electronic Money Transfer Levy Regulations, 2022, issued by the former Minister of Finance, Budget, and National Planning, Mrs. Zainab Ahmed.
These regulations, pursuant to Section 89A(3) of the Stamp Duties Act Cap. S8 Laws of the Federation of Nigeria, 2004, as amended by the Finance Act, 2021, provide comprehensive guidelines for the imposition, administration, collection, and remittance of the EMTL.
Under these regulations, the FIRS is appointed as the administrator responsible for assessing, collecting, and accounting for the levy. Banks and financial institutions are required to collect and remit the levy to the FIRS by the next working day or on a date prescribed by the FIRS.
Additionally, banks must prepare daily lists of cancelled or reversed transactions and submit monthly returns of the levies collected, including details of reversals and cancellations, to the FIRS within 21 days after each month.
Failure to comply with these regulations attracts huge penalties. Banks that fail to collect the levy will be liable for a penalty of 150 per cent of the levy not collected. If a bank collects the levy but fails to remit it, the bank will be liable for the levy, plus a 50 per cent penalty and interest at the Central Bank of Nigeria’s Monetary Policy Rate. Furthermore, inaccurate or unrendered returns will result in a penalty of 10 per cent of the unrendered or incorrectly rendered returns.
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