The fintech companies; Opay and Moniepoint have announced the implementation of a N50 fee charge on electronic money transfers exceeding N10,000. This is in compliance with Federal Inland Revenue Services, FRIS, regulations.
According to the statement, the new charge, is set to commence on 9 September. It stated that the charge applies to both personal and business accounts.
The two prominent fintech companies, communicated the change to their customers via a message titled “FGN Electronic Money Transfer levy,” which began circulating on Saturday.
It read: “Please be informed that starting September 9th, 2024, a one-time fee of N50 will be applied to electronic transfers of N10,000 and above. Paid into your personal or business account in compliance with the Federal Inland Revenue Service (FIRS) regulations.
“It is important to note that OPay does not benefit from this charge in any way as it is directed entirely to the Federal Government.”
The company noted that N50 fee is a one-time charge that will be applied to each eligible transfer in line with the government’s directive.
It informed that this development follows the enforcement of the Electronic Money Transfer Levy (EMTL). A tax introduced by the Nigerian Government under the Finance Act 2020.
According the Act, the EMTL mandates a fixed levy of N50 on electronic receipts or transfers of funds. This is to facilitate the collection of revenue to support the country’s fiscal needs.
“The tax is levied on transactions processed through any money transfer or payment system. And it applies to amounts of N10,000 or more.
“The levy is part of broader efforts by the Government to diversify its revenue sources amid growing needs. This is to help it to finance public services and infrastructure projects.
Recall that the fintech companies have recently become increasing popular as Nigerians and business owners have turned to them due to their reliability and efficiency. These platforms are favoured for their lower-than-average transaction decline rates. They also have the ability to instantly reverse transactions in the event of failed payments.
According to PREMIUM TIMES, the key attraction these fintech companies has been their low transaction fees. These companies have provided this much much-needed relief, particularly during the recent cash crunch.
According to reports, many businesses have opened accounts with these fintech companies. The incentive, being the assurance of receiving immediate transaction alerts, which became crucial for maintaining cash flow.
Recall that Moniepoint was listed as Africa’s fastest-growing fintech company by the Financial Times.
source: Premium Times
Follow us for more news on our WhatsApp News Channels @
https://whatsapp.com/channel/0029VaC505jB4hdZ5Yx9g82U
