Note: Federal Government orders Fintech firms to start debiting N50 from customer accounts from September 9

• Fintech firms including Moniepoint and Palmpay to start debiting N50 from customers’ accounts in line with FIRS order
• The new N50 charges, FIRS explains, will apply to every N10,000 inflow into customer accounts
• Mandatory withholding means the end of free banking services that some fintech companies used to provide

Legit.ng Journalist Dave Ibemere has over a decade of experience in business journalism and an in-depth knowledge of the Nigerian economy, stock market and overall market trends.

Financial technology companies including Moniepoint, Palmpay and others have begun notifying their customers of their plans to begin charging an Electronic Funds Transfer (EMTL) fee of N50 on every inflow into customers’ accounts of N10,000 or more, starting Monday, September 9, 2024.

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

Mandatory withholding marks the beginning of an era of free banking services provided by some fintech companies, although fees go to the federal government.

Opay explains deductions

Punch also reports that OPay has notified its customers about a new fee for electronic transfers to personal and business accounts, in accordance with the regulations of the Federal Tax Service.

In a message sent to customers on Saturday, OPay said:

“Dear customers, please be informed that effective September 9, 2024, for electronic transfers of N10,000 or more to a personal or business account, a one-time fee of N50 will be charged, in accordance with the regulations of the Federal Tax Service.”

“The company explained that these fees are a government requirement and do not constitute a source of income for the payment platform.

“It is important to note that OPay does not benefit from these fees in any way, as they are entirely directed to the federal government.”

The introduction of this fee is a consequence of the federal government’s efforts to generate revenue from electronic transactions through FIRS regulations.

Banks will debit the debtors’ bank accounts

Legit.ng had earlier reported that CBN Governor Olayemi Cardoso had revealed that over N10 trillion had been lent to customers under various intervention programmes.

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

Total disbursements under the ABP programme amount to N1.07 trillion, which goes to about 4.6 million smallholder farmers growing 21 crops across the country.

Source: Legit.ng