‘No more N200/10k withdraw: PoS Operators begin new charges on Moniepoint, PalmPay, others

The EMTL was issued by the Federal Inland Revenue Service (FIRS) on behalf of the Nigerian government, by the provisions of the 2020 Finance Act.

Fintech platforms indicate that the recent changes align with the Stamp Duty Act, which requires them to charge N50 for every N10,000 and above on the recipient’s accounts.

Point of Sale (PoS) operators are set to increase their charges starting Monday, December 2, 2024, by implementing the Electronic Transfer Levy (ETL) of N50 on every N10,000 received by users of fintech platforms such as Opay and Palmpay.

The policy was originally set to take effect on September 9, 2024, but its launch has been postponed due to widespread outrage among Nigerians.

Several fintech platforms sent messages to their customers on Sunday, December 1, 2024, notifying them they would be debited N50 for every N10,000 and above on the recipient’s accounts.

Moniepoint, Opay, PalmPay, and several other platforms have announced that their recent actions align with the Nigerian Stamp Duty Act, which requires the EMTL to be applied to customers’ accounts.

The companies have clarified that the levies apply to all inflows of N10,000 or more to the recipient’s accounts. The Electronic Money Transfer Levy (EMTL) imposes a charge of N50 on mobile money transfers, online banking, and other electronic deposits of N10,000 and above. One of the fintech companies, Opay, informed its customers through an in-app message, which Legit saw, that this charge will take effect starting December 1, 2024.

Meanwhile, Point of Sale (PoS) operators have reported a 25% increase in fees following the EMTL introduction on fintech platforms. They indicated that any funds sent into their accounts will incur an additional charge of N75, as the EMTL will also be deducted from their accounts.

According to them, when they receive money from anyone on behalf of their customers, they will incur an N50 EMTL charge, making them liable for the electronic transfer charges. They disclosed that they have to factor the EMTL into their charges to make a profit.

Olugbenga Toki, a PoS operator, informed Legit.ng that the charging of the new amount commenced on Monday, December 2, 2024, following notifications received from the fintech platforms.

“I have been telling my customers that the charges have changed. However, some understand while others walk away. I am tired of explaining that they must add extra charges if they send or withdraw money from me.”

Another operator in the Toyin area of Iju-Ishaga, Adedayo Adeleke, said they have increased their charges as they mostly use the fintech platforms for operations.

The PoS operators also disclosed that the current cash scarcity has made it essential to add extra charges.

They said they source their cash mostly from women in the market, petrol stations, and black markets, which has impacted their profit margin.

They state that most of the time, the market women and petrol attendants charge them more for cash.