Fintech companies like OPay and Moniepoint are implementing a mandatory N50 Electronic Money Transfer Levy (EMTL) deduction from inflows of N10,000 or above, effective September 9.
This follows a directive by the Federal Inland Revenue Service (FIRS), which has ended the era of free banking services provided by some fintechs, which was their main attraction for small customers.
For inflow transfers in other currencies, the levy is charged at the Central Bank of Nigeria‘s (CBN) exchange rates.
Since December 2023, the FIRS has directed deposit money banks to deduct and remit the EMTL on foreign currency transactions. Since then, the electronic transfer tax has generated N78.95 billion in revenue shared among the three tiers of government: federal 15%, state 50%, and local 35%.
The EMTL has become an integral part of Nigeria’s tax system, primarily designed to generate revenue for the government.
The Finance Act 2019, a key piece of legislation that amends existing tax and fiscal laws, including the Stamp Duty Act (SDA), plays a crucial role in the implementation of the EMTL. Under this act, the receiving bank must collect and remit the levy to the FIRS by the next working day after the transaction date.
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 on transactions above N10,000 starting September 9, following FIRS guidelines. This levy aims to boost government revenue as part of Nigeria's tax system reforms.){kind=link}