FG Introduces N50 Charge on Large Transactions
Beginning September 9, 2024, OPay will start applying a N50 levy to all electronic transfers exceeding N10,000 in Nigeria. This new charge is in direct response to Federal Government directives to increase revenue collections. The initiative specifically targets enhancing the Federal Inland Revenue Service’s (FIRS) financial inflows. As a leading fintech company, OPay will enforce this levy on relevant transactions. The move aligns with government efforts to bolster national revenue through digital financial transactions.
Direct Impact on OPay Customers
OPay has informed its customers that the new charge will be automatically deducted for qualifying transactions. The company emphasized that this levy is not for their benefit but is remitted directly to the government. Non-compliance with this directive could result in significant fines for financial institutions.
Background of the Electronic Money Transfer Levy
Introduced in 2022 by the Minister of Finance, Budget, and National Planning, Mrs. Zainab Shamsuna Ahmed, the levy has already generated substantial revenue. In the first five months of 2024 alone, it accounted for N78.95 billion. Initially targeting commercial banks, the scope has now expanded to include digital platforms like OPay and Kuda Bank.
Additional Financial Burdens for Nigerians
Apart from the N50 levy, Nigerians face a variety of other transaction charges. These include a temporarily paused Cybersecurity Levy, varying transfer fees based on the amount, a N4 charge for SMS notifications, and Value Added Tax (VAT) on transaction fees. These accumulated charges significantly increase the cost of electronic transfers within the country.
Wider Economic Implications
The introduction of this levy is seen as part of broader efforts to solidify fiscal stability and enhance government revenue streams. However, it raises concerns about the potential increase in transaction costs and its impact on digital financial inclusion.
Follow us on Socials: