FG Orders Banks, Other Financial Institutions to Deduct N50 From Nigerians

Beginning from December 1, 2024, banks and other financial institutions are to ensure that Nigerians pay N50 on every transfer above N10, 000.

The development is contained in a directive issued to all the country’s banks and other financial institutions, including OPay, Moniepoint, others, to begin the collection of the said amount from Nigerians with immediate effect.

Fintech companies including OPay, Moniepoint, and others have started notifying their customers of plans to begin deduction of N50 Electronic Money Transfer Levy, EMTL, from every inflow of N10,000 and above received by their customers starting from December 1.

The deduction, according to fintech, is in accordance with the directive by the Federal Inland Revenue Service, Firs, directive.

Already, some of the affected financial institutions have begun the implementation process by informing their customers of the new development.

In a notice sent to its customers, Opay wrote:

“Please be informed that starting September 9th, 2024, a one-time fee of N50 will be applied to electronic transfers of N10,000 and above paid into your personal or business account in compliance with the Federal Inland Revenue Service (FIRS) regulations."

In a similar development, Moniepoint informed its customers:

"Please be informed that in compliance with the Federal Government Stamp Duty Act, you will be charged an Electronic Money Transfer Levy (EMTL) of ₦50 by the Federal Inland Revenue Services (FIRS) on any electronic inflow of ₦10,000 and above."

The Electronic Money Transfer Levy, EMTL, is a one-time levy of N50 imposed on electronic money transfers or receipts in Nigeria which applies to all electronic transfers of funds in any Nigerian-licensed bank or other financial institution above N10,000.

It would be recalled that in December 2023, FIRS directed deposit banks to deduct and remit the EMTL on Foreign Currency transactions.

The deductions began in January 2024 but retrospectively covering the period between 2021 and 2023. EMTL-derived revenue is shared among the three tiers of government-Federal, State and LGAs, on the basis of derivation. However, the Federal Government receives 15%, state governments receiving 50% while LGAs take home 35%.