“Please Be Informed”: FG Orders Fintechs To Start N50 Deductions on Customers’ Accounts, Date Set

• Fintechs, including Moniepoint and Palmpay, will begin debiting N50 from customers' accounts as ordered by the FIRS
• The new N50 charges, explained by FIRS, will apply to every N10,000 inflow into customers' accounts
• This mandatory deduction marks the end of free banking services that some fintech have provided

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Fintech companies such as Moniepoint, Palmpay, and others have begun informing their customers about plans to implement the N50 Electronic Money Transfer Levy (EMTL).

This deduction will apply to every inflow of N10,000 or more received by customers starting Monday, September 9, 2024.

According to the fintech companies, this deduction is in accordance with the Federal Inland Revenue Service (FIRS) directive.

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This mandatory deduction brings to an era of free banking services that some fintechs provide, even though the charges go to the federal government.

Opay clarifies deductions

Also, Punch reports that OPay has notified its customers of the new charge on electronic transfers into personal and business accounts in compliance with Federal Inland Revenue Service regulations.

In a notice to its customers on Saturday, OPay stated:

“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 company clarified that the charges are requirements from the government and not a source of revenue for the payment platform.

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“It is important to note that OPay does not benefit from these charges in any way as it is directed entirely to the Federal Government."

The introduction of this fee follows the Federal government's efforts to generate revenue from electronic transactions through FIRS regulations.

Banks to debit debtors' bank accounts

Legit.ng earlier reported that the CBN governor, Olayemi Cardoso, revealed that over N10 trillion has been loaned to customers under various intervention schemes.

CBN data showed that between September and October 2022, the apex bank disbursed about N41.02 billion to several agricultural projects under the Anchor Borrowers' Programme (ABP).

The total disbursement under the ABP scheme amounts to N1.07 trillion, which is distributed to about 4.6 million smallholder farmers growing 21 commodities nationwide.

Source: Legit.ng