POS Operators Increase Charges After FG Enforces Transfer Levy
The Federal Inland Revenue Service (FIRS) ‘s implementation of the N50 Electronic Money Transfer Levy has sparked widespread condemnation from Nigerians, as Point-of-Sale (POS) operators increased their transaction charges across the country.
The levy, which applies to electronic inflows of N10,000 and above, took effect on Monday, leaving customers lamenting the hike in service fees.
Major fintech platforms, including Moniepoint, PalmPay, and OPay, had earlier informed their users of the compulsory deduction, stating that the levy would be remitted directly to the federal government.
In a statement, Moniepoint explained, “Please be informed that in compliance with the Federal Government Stamp Duty Act, you would be charged an Electronic Money Transfer Levy of N50 by the Federal Inland Revenue Service on any electronic inflow of N10,000 and above. Moniepoint does not benefit from this but receives and remits this sum to FIRS.”
Similarly, PalmPay notified its users, saying, “A N50 levy will be charged on transfers of N10,000 or more paid into your PalmPay account from November 30, 2024, as mandated by the Federal Government.” OPay also issued a terse notification: “In line with the FIRS, the EMTL applies starting December 1, 2024.”
As a result of the levy, many POS operators have adjusted their fees to reflect the additional charges, further straining customers already grappling with high transaction costs.
In Arepo, Ogun State, a POS operator, Kazeem Adewale, lamented the burden of explaining the changes to his customers. “I have been explaining and it is tiring. Customers think you want to cheat them, but all of us here have had to increase our charges because of this new levy,” he said.
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In Yaba, Ondo town, some operators have also announced plans to increase their charges. A vendor, Mrs. Helen Faniran, revealed that cash scarcity had already affected their business and profit margins, forcing them to pass the cost onto customers.
“Cash is scarce here. Since morning, I have not been able to do any business. Market women now sell cash to us, and we have to increase charges to cover the cost,” she explained.
Reactions On Social Media
On social media specifically on X (formerly Twitter), Nigerians expressed outrage over the levy and its ripple effects on transaction costs.
See reactions below;
@Mr_Cinch: If the owner of morning say it should be well with this government the owner of evening no fit align EMT levy from the credited account #50 and same levy on debited account but #100, bank go still commot their transfer charge and maintenance fee too
Kilode gan????
@tripzy82: Which kind pattern be this Electronic money transfer levy Ontop any transaction from 10k. This country ehh @
@OurFavOnlineDoc: All Nigerian Banks has started charging Electronic Money Transfer Levy (EMTL) of ₦50 by the Federal Inland Revenue Services (FIRS) on any electronic inflow of ₦10,000 and above.
Are you aware of this?
@SamAddai: one of the most obnoxious taxes,” adding, “How are we being punished for choosing digital money transfers over cash transactions?
@6xstem: robbery in broad daylight.
Sodiq Lawal is a passionate and dedicated journalist with a knack for uncovering captivating stories in the bustling metropolis of Osun State and Nigeria at large. He has a versatile reporting style, covering a wide range of topics, from politics , campus, and social issues to arts and culture, seeking impact in all facets of the society.
