50 naira transfer levy hits Nigerian fintech users

For many Nigerians, fintech platforms like OPAY, Moniepoint, and Palmpay have been a lifeline—offering quick, low-cost transfers.

But starting today, September 9, 2024, moving money through any fintech platform just got more expensive.

A new NGN50 levy on transfers of NGN10,000 or more now applies across all digital payment platforms. Whether for personal or business reasons, this transfer fee is unavoidable.

The #50 charge is part of the Electronic Money Transfer Levy (EMTL) under Nigeria’s Finance Act 2020. The revenue goes directly to the Federal Government, aimed at capturing the growth of Nigeria’s booming cashless economy, which processed over NGN600 trillion in digital transactions in 2023.

This levy is also part of the government’s efforts to generate revenue from the rapid expansion of digital payments and to support financial infrastructure improvements.

Previously, some users only faced a NGN10 fee with some even getting a specified number of free transfers in a month. Now, any transfer over NGN10,000 will incur this charge, and for frequent users, it could quickly add up.

Fortunately, certain transactions remain exempt from this levy. These include transfers below NGN10,000, transfers between your own accounts within the same bank, and transfers to yourself from another personal account.

Many Nigerians have since expressed frustration over the new charge, with calls for the government to reconsider the levy. While the House of Senate supports the fee, the House of Representatives is pushing for a reversal, showing the ongoing debate at the governmental level.

As fintech platforms continue to expand access to digital banking, the concern is that users may revert to cash-based transactions for larger amounts, potentially slowing progress toward a fully cashless economy.

While Nigerians adapt to the new fee structure, it remains to be seen if the government will make adjustments in response to public outcry.