The implementation of the N50 Electronic Money Transfer Levy (EMTL) on transactions of N10,000 and above has led to a surge in Point-of-Sale (POS) charges, sparking public outcry across Nigeria.
In compliance with the Federal Inland Revenue Service’s directive, fintech platforms such as Moniepoint, PalmPay, and OPay began collecting the levy, which was mandated under the Finance Act of 2020. The levy applies to mobile money, internet banking, and other electronic inflows, with funds remitted directly to the Federal Government.
POS operators nationwide have increased transaction fees, citing the levy and cash acquisition costs. For instance, charges for withdrawing N10,000 have risen from N300 to N400 in some areas, while others are yet to adopt the hike.
Customers expressed frustration on social media platforms, describing the levy as a burden on already strained finances. Economists have also warned that the levy could discourage digital transactions, negatively impacting the burgeoning fintech sector and the broader economy.
The implementation follows a suspension in September after public backlash, with experts labeling the levy a “desperate” revenue-generation measure amidst challenging economic conditions.
The increased POS charges reflect the ripple effects of the EMTL, leaving many Nigerians grappling with higher costs for financial transactions.
