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E-transfer levy: Consumers kick as POS operators raise charges

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Operators of Point-of-Sale terminals raised their charges on Monday in line with the implementation of the Electronic Money Transfer Levy of N50 by the Federal Inland Revenue Services charged on any electronic inflow of N10,000 and above.

Several fintech platforms on Sunday notified their customers that they would start the collection of N50 as an Electronic Money Transfer Levy in compliance with the Federal Government Stamp Duty Act, which would be remitted to Federal Inland Revenue Services.

Moniepoint in a mail said, “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 Services on any electronic inflow of N10,000 and above” adding that “FIRS charges you N50 for inflow received in your Moniepoint personal banking account. Moniepoint does not benefit from this but receives and remits this sum to FIRS.”

It clarified that the levy applies to all electronic inflows of N10,000 or more except when the electronic inflow is between Moniepoint accounts owned by the same user.

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The Electronic Money Transfer Levy is an N50 charge on mobile money, internet banking and other electronic inflows of N10,000 or more.

PalmPay told its “Dear Valued Customer, In accordance with the Electronic Money Transfer Levy regulation of 2022, a N50 levy will be charged on transfers of N10,000 or more paid into your PalmPay account from November 30th, 2024 as mandated by the Federal Inland Revenue.

“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.”

OPay sent a terse message to its customers on the app saying, “Dear customer, in line with the FIRS, the EMTL applies starting December 1st, 2024.”

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The Electronic Money Transfer Levy was first introduced through the Finance Act 2020, which expanded the scope of dutiable instruments under the Stamp Duties Act to include electronic transactions.

The regulations guide the imposition, administration, collection, and remittance of the Electronic Money Transfer Levy which was introduced by the Finance Act, 2020. Key provisions include A one-time levy of N50 on the recipient of any electronic receipts or transfers of N10,000 or more.

A POS operator in the Arepo area of Ogun State, Kazeem Adewale, lamented in Yoruba that he had been explaining to customers the reason for the hike in charges since yesterday and was barely coping with annoyed 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 groaned.

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A POS operator in Yaba in Ondo town, Mrs Helen Faniran, said, “I haven’t started collecting the charge but I have heard a few of my colleagues saying they would start. One of them said instead of charging N300 for N10,000, she was going to start charging N400.”

Asked why they were charging N300 for N10,000 in the first place, Faniran said “Cash is scarce here. Since morning I have not been able to do any business.”

Asked how she sources her cash, she said, “We buy cash from market women and anyone ready to give us. Before the market women used to give us for free but now they sell to us. That has impacted our profit margin. Ordinarily, it would collect N200 for N10,000 but since we are buying and you have to go through a lot of stress to get your cash, you have to add N100 to it. The market women will give you N100,000 for N2,000 and we will do the same amount for N3,000.”

A POS operator at the Agege area of Lagos State said the charges commence tomorrow(Tuesday). In the Ikotun area of Lagos, a customer said that there had been no increase in charges as of Monday.

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Another customer, Deborah Attah, said, “They charged me N600 for N20k when it used to be N400. N5,000 is now N150and N10,000 is N300.”

On social media, bank customers also lamented the hike in POS charges.

A user of the social media platform, X, Sam Addai, lamented, “E levy is one of the most obnoxious taxes. How are we being ‘punished’ for choosing digital money transfers over cash transactions?”

Another X user, 6xstem, said, “Electronic Transfer levy is criminal! Electronic Transfer levy is robbery in broad daylight. Stealing from the citizens indirectly is insane!”

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Seige (@OjoPraise), adding his voice said, “My issue with the POS money vendors is they will add more charges when you want to transact anything because of this levy. Imagine you want to withdraw N1,000 and they will say 200 per N1,000. After all, nobody is going to protest or do anything. We are broken!”

Adding a crying emoji to his comments, @chxbueze said, “Government go collect charges, POS too go collect.”

Muritala Mujeed said, “Ohhhh This is the reason why POS users started N100 extra charges on transactions above N10,000. I wanted to pay for fuel this morning and I was shocked by the guy’s ‘shalaye’ (explanation). Toor, it is well o.”

Collins said, “I deposited N12,000 from POS to my account, they still charged me N50 and I paid POS charges. Please what’s going on?”

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The initial implementation of the levy in September elicited reactions from Nigerians especially on social media who accused the government of continuously imposing taxes on citizens without notable progress or accountability for how the monies are spent. It was suspended and implementation was moved to December 1st.

As of the time of the initial implementation, economists had warned that the move would ground the fintech space.

Former Chief Economist at Zenith Bank, Marcel Okeke, told The PUNCH that the move was ill-timed and could have far-reaching negative consequences for the economy, particularly in the fintech sector, which has been growing rapidly in recent years.

Okeke argued, “The Federal Government’s move to impose a N50 levy on fintech transactions is driven by a desire to boost revenue. However, this approach may have unforeseen consequences. By targeting digital transactions, the government may inadvertently discourage people from using these services, leading to a demonetisation of the economy,” Okeke said.

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Another economist, Alias Aliyu, described the government’s action as a “desperate move” to increase revenue, arguing that the current economic conditions do not justify such a measure.

Credit: PUNCH

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Akpabio sad over demise of Dotun Oladipo, says he was a courageous journalist

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The President of the Senate, Senator Godswill Obot Akpabio, has expressed profound sadness over the death of veteran journalist and publisher of The Eagle Online, Dotun Oladipo.

Akpabio described Oladipo’s passing as a painful loss to the Nigerian media industry and the nation, noting his significant contributions to journalism, public discourse and the growth of online media in Nigeria.

The President of the Senate commiserated with the family, friends, colleagues and professional associates of the deceased, particularly members of the Guild of Corporate Online Publishers (GOCOP), where Oladipo served as Emeritus President.

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“Dotun Oladipo was a courageous, principled and dedicated journalist who devoted a significant part of his life to the pursuit of truth, responsible journalism and the advancement of society.

“His sudden passing is a profound loss to his family, the journalism profession and Nigeria as a whole. His immense contributions to the development of online journalism, as well as his commitment to professional excellence, integrity and public interest, will remain indelible.

“As the philosopher John Stuart Mill reminded us, ‘He who knows only his own side of the case knows little of that.’ Dotun understood that a free and responsible press must listen, question and speak truth to power. His life demonstrated that journalism, when guided by courage and conscience, can illuminate society and strengthen democracy.

“His legacy will continue to inspire journalists and media professionals who believe in the power of responsible journalism to strengthen democracy and contribute to national development,” Akpabio said.

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The Senate President prayed that God Almighty would grant the deceased eternal rest and give his family, friends, colleagues and loved ones the fortitude to bear the irreparable loss.

Akpabio also urged members of the media to uphold and build upon Oladipo’s legacy of professionalism, integrity, courage and unwavering commitment to the public interest.
“May God acquaint his soul with the compass of His course” he added.

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SGF sets up presidential security committee, demands professionalism, urgency

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The Secretary to the Government of the Federation (SGF) on Wednesday inaugurated the Presidential Committee on the National Threat Assessment and Five-Year Strategic Defence Operations Plan, charging members to approach the assignment with the highest degree of professionalism, objectivity, urgency and patriotism.

The committee, established by President Bola Ahmed Tinubu, has 90 days to produce a comprehensive National Threat Assessment and a rolling Five-Year Strategic Defence Operations Plan for the President’s consideration and approval.

The SGF, who described the assignment as one of considerable national importance, urged members to bring their collective expertise to bear on developing a coherent framework that would strengthen Nigeria’s capacity to anticipate, plan for and respond to current and emerging security threats.

He assured the committee of the full support and cooperation of the Office of the Secretary to the Government of the Federation, adding that it had been authorised to consult or co-opt representatives of other Ministries, Departments and Agencies whose specialised knowledge might be required.

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According to a statement issued by his Special Adviser on Media and Publicity, Yomi Odunuga, Akume said the inauguration marked an important step in strengthening the country’s ability to understand and respond effectively to an increasingly complex and evolving security environment.

He observed that contemporary security threats had become increasingly interconnected and adaptive, with the capacity to exploit gaps between institutions, jurisdictions and operational theatres.

While acknowledging significant successes recorded by the Armed Forces and other security agencies across different theatres in recent months, the SGF said Nigeria must move beyond responding to individual security challenges to building a system capable of anticipating threats, setting priorities, allocating resources rationally and sustaining operational momentum.

Such a system, he said, must also ensure that national security objectives are consistently translated into measurable outcomes.

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The SGF stressed that although heads of defence, intelligence and security agencies must retain the flexibility required to respond to immediate threats, their responses should be anchored on a shared national understanding of the security environment and a coherent short-, medium- and long-term strategy.

He noted that operational requirements were sometimes considered independently without sufficient reference to an agreed national threat assessment, clearly prioritised national objectives or a unified capability plan.

According to him, the situation made coordination more difficult and limited the efficient deployment of scarce resources.

The committee, he explained, is therefore expected to help establish a coherent strategic system in which Nigeria’s threat assessment determines operational objectives, while those objectives, in turn, determine the capabilities required.

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Capability requirements, he added, should inform expenditure, procurement, force development and industrial priorities.

“In simple terms, we must establish a clear path from threat to objective, from objective to capability, from capability to resource, and from resource to measurable outcome”, the SGF said.

He explained that the National Threat Assessment would provide the government with a comprehensive and objective understanding of Nigeria’s security landscape by identifying what threatens the country, why the threats matter, how they are likely to evolve and the consequences of failing to address them.

It would also determine appropriate government responses and provide a common planning basis for the Armed Forces, intelligence services and other relevant security agencies.

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According to him, the assessment should enable the government to distinguish between immediate threats requiring urgent operational responses and emerging threats demanding early investment in intelligence, technology, infrastructure, doctrine, training and other capabilities.

The Five-Year Strategic Defence Operations Plan, on the other hand, would translate the National Threat Assessment into practical and prioritised operational requirements.

The SGF said the plan should establish what must be achieved in each operational theatre and identify the forces, capabilities, equipment, infrastructure, logistics, intelligence, technology and other enablers required to achieve the objectives.

It would also identify existing capability gaps and establish priorities based on the severity and urgency of identified threats, as well as provide a realistic implementation timetable specifying what is required, when it is required, why it is required, who is responsible for delivering it and how progress will be measured.

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The five-year timeframe, he said, would provide the medium-term horizon required for force development, capability acquisition, infrastructure development, training, maintenance, research and development and the strengthening of Nigeria’s defence industrial base.

The plan would, however, operate on a rolling basis and be reviewed annually to accommodate emerging threats, changing operational realities, technological developments and lessons from ongoing operations.

Under its Terms of Reference, the committee is to review the principal existing and emerging security threats facing Nigeria and assess their relative urgency and strategic implications.

It is also mandated to define operational priorities and identify capabilities required in each theatre; determine capability gaps and equipment, logistics, infrastructure, technology, personnel and support requirements; and establish procurement priorities based on assessed threats and operational requirements rather than institutional preferences.

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The committee will also establish implementation steps and realistic timelines for each priority, including measures for monitoring progress and assessing outcomes, as well as make other recommendations necessary for the formulation and effective implementation of the Strategic Defence Operations Plan.

The SGF said the nation’s military and security personnel, who continue to demonstrate courage and commitment in defending the country, deserve a strategic framework that clearly defines their objectives and provides the capabilities, resources and support required to accomplish them.

He thereafter formally inaugurated the committee on behalf of President Tinubu, wishing members wisdom, diligence, and successful deliberations in discharging the national assignment. Government

The committee, which will be coordinated and supported by the Office of the Special Adviser to the President on Homeland Security, Major General Adeyinka Famadewa (rtd), has as members the National Security Adviser, Nuhu Ribadu; Minister of Defence, General Christopher Musa (rtd); Minister of State for Defence, Bello Muhammad Matawalle; and Chief of Defence Staff, General Olufemi Oluyede.

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Others are the Chief of Army Staff, Lt.-General Waidi Shaibu; Chief of Air Staff, Air Marshal Sunday Kelvin Aneke; Chief of Naval Staff, Vice Admiral Idi Abbas; Inspector-General of Police, Olatunji Rilwan Disu; Director-General of the Department of State Services, Tosin Ajayi; and Director-General of the National Intelligence Agency, Ambassador Muhammed Muhammed.

In his closing remarks, Famadewa expressed appreciation to President Tinubu for the confidence reposed in members and the opportunity given to them to contribute to the security and well-being of the country. Government

He urged members to work collectively and in synergy towards strengthening Nigeria’s security architecture, stressing that the assignment must be approached as a shared national responsibility.

Famadewa said his role would not be to command members of the committee but to facilitate collaboration and harness their collective expertise towards achieving the objectives set by the President.

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He also said subcommittees would be established to facilitate the work, allow members to concentrate on specialised areas, and ensure the committee completes the assignment within the stipulated 90-day timeframe.

The Nation

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How Late Nollywood actor Ogogo donated N2.5m to mosque renovation while on sick bed – Muslim community

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Details have emerged that the late veteran actor Taiwo Hassan, popularly known as Ogogo, donated ₦2.5 million towards the renovation of a mosque in Ilaro, Ogun State, last month despite being on a sick bed.

According to a post by A. Adebanji on X, Ogogo personally contacted the Imam of Ilaro mosque after learning that renovation work was ongoing and expressed his desire to contribute to the project.

The Ilaro Muslim community said it was shocked when it received ₦2.5 million from the actor and immediately contacted him to confirm the donation.

“He told us he would have given us more, but because of his health situation, he didn’t want to come on social media to start begging for financial assistance,” the community said.

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The revelation has added a poignant dimension to tributes following Ogogo’s death, highlighting his philanthropic gesture towards his community even while he was battling ill health.

The community prayed for Allah’s forgiveness and eternal rest for the late actor.

Ogogo was widely known for his contributions to the Nigerian film industry, particularly Yoruba-language cinema, and remained a prominent figure in the entertainment industry until his death.

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