The Nigerian government has decided to charge a fee of N50 for electronic transactions of N10,000 or more, starting from September 9, 2024. This decision is meant to bring in more money from the fintech industry, which handled transactions worth N46.91 trillion in 2023.
The fee, called the Electronic Money Transfer Levy (EMTL), will apply to transactions done through fintech companies like Opay, Palmpay, and Moniepoint. These companies have already told their customers about the upcoming fee, which follows rules set by the Federal Inland Revenue Service (FIRS).
The EMTL was added to the Finance Act in 2020 and is expected to bring in N157.59 billion for the government in 2024. The money from this fee will be shared between the federal, state, and local governments. This move is seen as a way to benefit from the increasing number of electronic transactions in the country.
Experts think this change will make more transactions subject to the EMTL purview, potentially increasing government revenue. However, some experts warn that the move may negatively impact neobanks, whose appeal lies in their low or zero transfer fees.
