Opay And Fintech Banks Face Backlash Over New Fee Policy

The implementation of a ₦50 stamp duty fee on transactions of ₦10,000 and above by Opay, Moniepoint, and other Nigerian fintech banks has sparked diverse reactions among users. The fee complies with Federal Inland Revenue Service (FIRS) regulations and applies to electronic transfers into personal and business accounts.

Public Reactions
The enforcement of the levy has drawn mixed responses from Nigerians. Critics argue that imposing additional fees is insensitive, given the prevailing economic hardship. Some believe it adds to the burden of citizens already grappling with inflation and economic challenges.

One user on X (formerly Twitter), @Dambatta_1, expressed frustration, asking, “When are they going to start charging for oxygen?” Another user, @ndukwemeruwa, commented, “It’s pure extortion to use some of these funds to buy presidential jets and renovate government houses.”

Others downplayed the issue, pointing out that traditional banks have been applying the levy for years. User @Yusufaa remarked, “This has been on for over 2 or 3 years now. This statement is not new.”

What Is the Stamp Duty Fee?
The stamp duty, also known as the Electronic Money Transfer Levy (EMTL), is a one-time charge of ₦50 applied to electronic receipts or transfers of funds in any commercial or financial institution. The levy, which has been part of Nigeria’s tax framework, was introduced under the Finance Act of 2019 to boost government revenue.

In a notice dated December 1, 2024, Moniepoint informed its customers of the policy, stating, “The EMTL applies starting December 1, 2024.” Similarly, Opay and other fintech platforms issued notifications to their customers regarding the stamp duty.

How It Works
The levy is deducted by the receiving bank, which is then responsible for remitting it to the FIRS by the next working day. For walk-in customers without bank accounts, the bank deducts the fee from the transaction amount. Since December 2023, the FIRS has also mandated banks to apply the levy to foreign currency transactions.

Economic Context
The ₦50 levy has contributed significantly to government revenue, with ₦78.95 billion collected in the first five months of 2024. As digital payment systems grow, the Central Bank of Nigeria has projected that cash usage will decrease further by 2025. This trend is evidenced by the sharp rise in cashless transactions, which exceeded ₦600 trillion by the end of 2023, compared to ₦395.38 trillion in 2022.

Looking Ahead
While the policy on stamp duty aligns with global trends in regulating and taxing electronic transactions, its introduction has reignited debates about the balance between government revenue generation and public economic welfare especially with customers of Opay.

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