Fintechs to charge N50 stamp duty on transactions above N10k from Monday

Nigerian financial technology firms (fintechs) have announced plans to introduce a N50 stamp duty fee on transactions of N10,000 and above from Monday.

In a notice to customers on Saturday, Opay, said the move complies with Federal Inland Revenue Service (FIRS) regulations, noting that the fee will be applied to electronic transfers into personal and business accounts.

The stamp duty or electronic money transfer levy (EMTL) is a single, one-off charge of N50 on electronic receipt or transfer of money deposited in any commercial money bank or financial institution on any type of account on sums of N10,000 and above.

In the notification, OPay said the deductions would commence on September 9.

“Dear valued customers, please be informed that starting September 9, 2024, a one-time fee of N50 will be applied for electronic transfer of N10,000 and above paid into your personal or business account in compliance with the Federal Inland Revenue Service regulations,” the statement reads.

The company said it does not benefit deductions as the charges go to the federal government.

“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,” OPay added.

In separate communications to customers, Moniepoint and PalmPay also announced the implementation of the stamp duty from Monday.

According to a circular, PalmPay said the directive is “in accordance with the Electronic Money Transfer Levy (EMTL) regulation of 2022”.

“An N50 levy will be charged on transfers of ₩10,000 or more paid into your PalmPay account from September 9th, 2024, as mandated by the Federal Inland Revenue (FIRS), ” the circular reads.

‘Please note that PalmPay does not benefit from this levy, it is remitted directly to the federal government.

“PalmPay continues to offer unlimited free transfers to any bank account. We are dedicated to providing affordable and accessible financial services to our valued customers.”

On December 31, 2020, Muhammadu Buhari, former president, signed the 2020 finance Act, which imposed a levy of N50 on electronic receipts or transfers of the aforementioned sum.

In July 2022, Kuda Microfinance Bank introduced the stamp duty on all deposits of N10,000 and above.