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Nigerians React as Opay, Moniepoint, and Other Fintech Platforms Introduce N50 Stamp Duty on Transactions Above N10,000
The implementation of a N50 stamp duty fee on electronic transactions above N10,000 by Opay, Moniepoint, and other fintech banks in Nigeria has sparked a wave of reactions across the country.
On Sunday, December 1, 2024, Moniepoint issued a notice to customers, explaining that the charge complies with Federal Inland Revenue Service (FIRS) regulations. The fee, known as the Electronic Money Transfer Levy (EMTL), is a one-off deduction applied to electronic transfers into personal and business accounts.
Opay and other digital payment platforms, including Palmpay, have also informed their users of the new fee. Opay’s announcement stated, “Dear customer, in line with the FIRS, the EMTL applies starting December 1, 2024.”
What Is the EMTL?
The Electronic Money Transfer Levy is a policy introduced to generate revenue for the Nigerian government. It stems from amendments made to the Stamp Duty Act (SDA) through the Finance Act of 2019.
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The N50 fee is levied on the electronic transfer or receipt of funds into commercial or financial institution accounts for transactions exceeding N10,000. Banks are mandated to collect and remit the levy to the FIRS by the next working day.
In December 2023, the FIRS expanded the levy to cover foreign currency transactions, a move that has since contributed significantly to government revenue. By mid-2024, the levy had generated N78.95 billion within just five months.
The levy coincides with Nigeria’s shift towards a cashless economy, a trend that has seen digital payment volumes rise sharply. Cashless transactions surged to over N600 trillion in 2023, up from N395.38 trillion in 2022. In the first quarter of 2024 alone, these transactions grew by 88.09%, reaching N237 trillion.
The Central Bank of Nigeria (CBN) has projected further declines in cash usage by 2025, with digital payment platforms continuing to gain popularity.
Public Reactions
The introduction of the fee has divided opinions among Nigerians. Some criticized the government for imposing additional financial burdens amidst economic challenges, while others pointed out that traditional banks have been implementing similar charges for years.
A user on X (formerly Twitter), @ndukwemeruwa, wrote, “It’s pure extortion to use some of these funds to buy presidential jets and renovate government houses.”
Another user, @Dambatta_1, sarcastically questioned, “When are they going to start charging for oxygen?”
Others, like @AmeboThe, noted that the levy is not a new development, referencing its introduction under the Buhari administration through the 2019 Finance Act.
Despite mixed reactions, fintech platforms remain committed to implementing the levy in compliance with FIRS regulations, signaling a broader alignment with Nigeria’s fiscal policies.
As Nigeria accelerates towards a digital economy, the N50 stamp duty on transactions above N10,000 underscores the government’s drive to leverage financial technology for revenue generation. However, the policy continues to spark debates about its fairness and timing amid prevailing economic challenges.
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