Starting from September 9th, 2024, the Federal Government of Nigeria (FGN) is implementing a ₦50 levy on all electronic money transfers over ₦10,000. This nationwide charge will apply to transfers into both personal and business accounts, affecting all banks and financial service providers. Here’s everything you need to know:
The ₦50 Electronic Transfer Levy: What Is It?
In line with the Electronic Money Transfer Levy (EMTL) regulation of 2022, a one-time fee of ₦50 will now be charged on every electronic transfer exceeding ₦10,000. This includes transfers made through all major banks and platforms like GTBank, Zenith Bank, Access Bank, and even mobile money operators like OPay and PalmPay.
The collected levy will be remitted directly to the Federal Inland Revenue Service (FIRS) and not retained by any banks or financial platforms.
What Transactions Are Affected?
- All bank transfers (personal or business) above ₦10,000.
- Transfers are made via mobile banking apps, USSD, and online platforms.
Even though the levy applies to various platforms, it’s important to note that it’s a government mandate, meaning financial institutions like banks and fintech companies do not profit from this charge.
Why Is This Happening?
The government, through FIRS, is enforcing the EMTL regulation as a way to boost revenue collection. The goal is to increase public funds to support infrastructure, healthcare, and other vital sectors.
What About Free Transfers?
Despite the levy, many banks and mobile money services, like PalmPay and OPay, offer free transfers within certain limits. Check with your provider for specific terms and conditions on free or reduced-fee transfers.
Conclusion: Staying Informed and Ready
As this new levy takes effect, Nigerian bank users will have to adapt to the change. Whether you’re running a business or managing personal finances, it’s essential to factor in this additional cost for transactions over ₦10,000. Stay tuned to this blog for further updates on financial policies affecting your transactions.
