PoS operators have notified Nigerians that they have increased their charges due to the N50 EMTL deductions by fintech platformsThe EMTL was ordered by the Federal Inland Revenue Service (FIRS) on behalf of the Nigerian government and aligns with the 2020 Finance Act.Fintech platforms say that the move aligns with the Stamp Duty Ac, asking them to charge N50 for every N10,000 and above on the recipient’s accounts
Henzodaily.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Point of Sale (PoS) operators have increased their charges, effective Monday, December 2, 2024, in line with the implementation of the Electronic Transfer Levy (EMTL) of N50 on every N10,000 received by Opay, Palmpay, and other fintech platform users.
The EMTL was ordered by the Federal Inland Revenue Service (FIRS) on behalf of the Nigerian government and aligns with the 2020 Finance Act.
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PoS operators under Opay, PalmPay, Moniepoint, and others begin new charges
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The policy was scheduled to begin on September 9, 2024, but it was delayed following Nigerians’ outrage.
Fintech platforms begin N50 EMTL charges
Several fintech platforms sent messages to their customers on Sunday, December 1, 2024, notifying them they would be debited N50 for every N10,000 and above on the recipient’s accounts.
Moniepoint, Opay, PalmPay, and other platforms disclosed that the move complies with the Nigerian Stamp Duty Act, which mandates charging the EMTL to customers’ accounts.
The companies clarified that the levies apply to all inflows of N10,000 or above on the recipient’s accounts.
The EMTL is an N50 charged on mobile money transfers, internet banking and other electronic inflows of N10,000 and above.
One of the fintech companies, Opay, disclosed in an in-app message to customers, seen by Henzodaily.ng, that the charge would begin December 1, 2024.
PoS operators increase charges
Meanwhile, PoS operators said they had increased their charges by 25% following the introduction of the EMTL on fintech platforms.
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They reveal that any money sent into their accounts would attract N75 extra charges as the EMTL would also be charged to their accounts.
According to them, when they receive money from anyone on behalf of their customers, they will incur an N50 EMTL charge, making them liable for the electronic transfer charges.
They disclosed that they have to factor the EMTL into their charges to make a profit.
Olugbenga Toki, PoS operator, disclosed to Henzodaily.ng that they have begun charging the new amount since Monday, December 2, 2024, when they received notifications from the fintech platforms.
“I have been telling my customers that the charges have changed. However, some understand while others walk away. I am tired of explaining that they must add extra charges if they send or withdraw money from me.”
Another operator in the Toyin area of Iju-Ishaga, Adedayo Adeleke, said they have increased their charges as they mostly use the fintech platforms for operations.
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“I have increased my charges. Instead of the usual N100 for N10,000, I now charge between N125 and N150 for every N10,000. It also depends on the destination and originating accounts.”
Cash scarcity adds to new charges
The PoS operators also disclosed that the current cash scarcity has made it essential to add extra charges.
They said they source their cash mostly from women in the market, petrol stations, and black markets, which has impacted their profit margin.
They state that most of the time, the market women and petrol attendants charge them more for cash.
FG begins N50 EMTL charges on fintech platforms
Henzodaily.ng earlier reported that the Nigerian government has begun deducting the N50 electronic transfer levy (EMTL) from transactions of N10,000 and above made by fintech firm users.
The fintech firms include Opay, Moniepoint, Palmpay, Kuda, and other digital payment platforms.
The Nigerian government introduced the EMTL under the 2020 Finance Act. It imposed a single, one-off levy of N50 or above on electronic transfer transactions made by banks and other financial institutions.
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Proofread by Kola Muhammed, journalist and copyeditor at Henzodaily.ng
Source: Henzodaily.ng