POS Operators Increase Charges as FG Enforces Transfer Levy
The implementation of Federal Inland Revenue Service (FIRS) on the ‘ N50 Electronic Money Transfer Levy has sparked widespread condemnation from Nigerians, as Point-of-Sale (POS) operators increased their transaction charges across the country.
The levy, which applies to electronic inflows of N10,000 and above, took effect on Monday, leaving customers lamenting the hike in service fees.
Major fintech platforms, including Moniepoint, PalmPay, and OPay, had earlier informed their users of the compulsory deduction, stating that the levy would be remitted directly to the federal government.
In a statement, Moniepoint explained, “Please be informed that in compliance with the Federal Government Stamp Duty Act, you would be charged an Electronic Money Transfer Levy of N50 by the Federal Inland Revenue Service on any electronic inflow of N10,000 and above. Moniepoint does not benefit from this but receives and remits this sum to FIRS.”
Similarly, PalmPay notified its users, saying, “A N50 levy will be charged on transfers of N10,000 or more paid into your PalmPay account from November 30, 2024, as mandated by the Federal Government.” OPay also issued a terse notification: “In line with the FIRS, the EMTL applies starting December 1, 2024.”
As a result of the levy, many POS operators have adjusted their fees to reflect the additional charges, further straining customers already grappling with high transaction costs.
In Arepo, Ogun State, a POS operator, Kazeem Adewale, lamented the burden of explaining the changes to his customers. “I have been explaining and it is tiring. Customers think you want to cheat them, but all of us here have had to increase our charges because of this new levy,” he said.
