The federal government has officially commenced the deduction of a N50 levy on electronic transfers of N10,000 and above, effective 1 December 2024. 
The levy, known as the Electronic Money Transfer Levy (EMTL), applies to transfers received through financial technology platforms, including Opay, Moniepoint, and Kuda, among others.
This follows an earlier announcement by the Federal Inland Revenue Service (FIRS) in September 2024, which disclosed plans to implement the levy in accordance with the Finance Act 2020. 
Notifications sent to customers by fintech companies over the weekend confirmed the commencement of the deductions.
Opay, in its statement, reiterated that the levy is mandated by the federal government and not retained by the platform. 
“Starting 1 December 2024, a one-time levy of N50 will be applied to electronic transfers of N10,000 and above in compliance with FIRS regulations. Opay does not benefit from this charge,” the notice read.
Moniepoint issued statement across to their customers in the same line emphasizing that the charges are part of the government’s regulatory framework, with no direct benefit to the companies involved.
While the federal government’s move was aimed at generating additional revenue, it has met with significant opposition from various Nigerian groups, including the National Association of Nigerian Students (NANS), which has called on the government to reconsider its implementation.
The implementation of the EMTL has drawn complaints from Nigerians, with many tired of the current financial burden brought about by the recent economic downturn.
Nonetheless, the levy has been placed as a key revenue-generating tool for the government. Over the past year, digital transactions in Nigeria have increased, with cashless transactions exceeding N600 trillion in 2023. 
The FIRS has mandated all financial institutions, including fintech operators, to ensure prompt deductions and remittance of the levy.