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Just in: Despite hunger, FIRS Orders all Banks To Start Taking N50 Compulsory Electronic Money Transfer
…levy On Every N10,000 Transfer
Despite hunger in Nigeria, the Federal Inland Revenue Service (FIRS) has directed all banks in Nigeria to enforce a mandatory N50 levy on electronic money transfers exceeding ₦10,000.
This directive aligns with the provisions of the Finance Act, which introduced the Electronic Money Transfer Levy (EMTL) as part of the government’s revenue generation efforts.
The EMTL is a fixed charge applied to qualifying transactions, and its implementation is expected to boost federal and state government revenues.
According to the FIRS, the levy is applicable to all forms of electronic transfers, including internet banking, mobile money platforms, and Point-of-Sale (POS) transactions.
The responsibility for collecting and remitting the levy lies with financial institutions, which must ensure compliance with the directive.
What Does This Mean for Bank Customers?
For every electronic transfer exceeding ₦10,000, bank customers will now pay an additional ₦50. For instance, if a customer transfers ₦20,000, a total of ₦20,050 will be debited from their account. This levy is separate from any service fees charged by banks for processing transactions.
Reactions from Stakeholders
The directive has sparked mixed reactions among Nigerians. While some view it as a minor inconvenience, others see it as an additional financial burden in a country already grappling with economic challenges. Critics argue that the levy could discourage cashless transactions, contradicting the Central Bank of Nigeria’s (CBN) drive for a cashless economy.
However, the FIRS maintains that the levy is essential for funding critical public services and infrastructure projects. “This levy is not new. It is part of the Finance Act, and the banks are simply implementing what has already been approved by law,” an FIRS spokesperson stated.
Implications for the Economy
The introduction of the EMTL is expected to generate significant revenue for the government. Under the Finance Act, revenue collected from the levy is shared between the federal and state governments, with 15% allocated to the federal government and 85% to the states.
Economists argue that while the levy could enhance government revenue, its success depends on proper management and transparency in fund utilization. There are also concerns about the potential impact on the informal sector, which relies heavily on electronic transfers for business transactions.
As the FIRS pushes for the implementation of the N50 levy on electronic money transfers, Nigerians are adjusting to the reality of an additional cost on their financial transactions. While the policy aims to increase government revenue, its long-term impact on the cashless economy and financial inclusion remains to be seen.
Bank customers are advised to stay informed about how the levy affects their transactions and to factor in the additional charge when making transfers.
HouBy Gloria Ikibah
The Minister of Health and Social Welfare, Prof. Mohammed Ali Pate, has revealed that only 15.06 percent of the capital allocation for the health sector in 2024 has been released, significantly delaying the execution of critical projects.
Speaking during defence of the Ministry’s 2025 budget before the Senate and House of Representatives Joint Committee on Health, Prof. Pate attributed the delays to the bottom-up cash plan policy of the Office of the Accountant General of the Federation.
Out of the N233.656 billion allocated for capital projects in 2024, only N26.552 billion was released and utilized. The Minister also disclosed that the Ministry had not received any funds from the N57.393 billion earmarked for multilateral and bilateral loans.
Giving and overview of the 2024 budget performance, Prof. Pate detailed that the total 2024 budget for the Ministry stood at N242.14 billion, comprising:
- N7.48 billion for personnel,
- N998.74 million for overhead, and
- N233.66 billion for capital projects.
For 2025, the budget estimates have been slightly increased to:
- N10.36 billion for personnel,
- N1.59 billion for overhead, and
- N248.32 billion for capital projects.
On the Health Sector Vision and Strategic Goals, the Minister emphasised that the health sector operates within the framework of the Vision 20:2020, the National Development Plan (2021–2025), and the National Strategic Health Development Plan. These policies aim to guarantee the right to health for all Nigerians, guided by the National Health Act and the 2016 National Health Policy.
He stressed that the 2025 budget aligns with the government’s focus on universal health coverage, prioritizing:
- Strengthening the primary healthcare system,
- Enhancing equitable and efficient health service delivery, and
- Promoting socio-economic development through improved health outcomes.
Prof. Pate also highlighted that the budget preparation for 2025 adhered to the GIFMIS platform, ensuring resource allocation aligns with national priorities and ministerial deliverables.
Responding to lawmakers, the Minister called for national unity in advancing the health sector. He noted significant progress despite challenges, including:
- The provision of world-class facilities in federal hospitals,
- Investment in infrastructure and manpower development,
- Local drug production boosted by the President’s Executive Order signed in June 2024, which has empowered manufacturers to upgrade their operations.
He further lauded Nigerian medical personnel for their global demand, underscoring their competence and dedication.
The Minister reaffirmed the government’s commitment to improving healthcare delivery and urged Nigerians to recognize the positive developments in the sector.
HhouseBy Gloria Ikibah
The House of Representatives Committee on Federal Polytechnics and Higher Technical Education has reiterated that performance must justify any requests for additional funding by agencies in the 2025 budget.
Chairman of the Committee, Rep. Fuad Kayode Laguda, made this clear during the budget defence session of the National Board for Technical Education (NBTE), presented by its Executive Secretary, Professor Idris Bugaje.
Laguda acknowledged the funding challenges faced by polytechnics but emphasised the importance of demonstrating effective utilization of allocated resources before seeking more.
“Performance is very key. It is a known fact that polytechnics are poorly funded, but we need to justify why more resources are needed. To be honest, not all institutions have demonstrated this. The role of this committee is to ensure accountability and drive improvements”, he said.
He highlighted the importance of the NBTE’s role in technical education and urged the agency to foster better synergies among polytechnics and stakeholders. He also charged rectors to be proactive in introducing modern and relevant courses tailored to their environments.
Professor Idris Bugaje, while presenting the NBTE’s 2024 budget performance and 2025 proposal, called for increased budgetary allocation to address manpower shortages. He noted that the agency, responsible for supervising over 700 institutions, currently operates with only 330 staff, which he described as grossly inadequate.
“For personnel, we need improvement. Similar agencies with fewer institutions and more funds have more staff. We need more hands to adequately supervise these institutions,” Bugaje stated.
On internally generated revenue (IGR), Bugaje explained that earnings primarily come from service charges during accreditation visits. He revealed that the agency’s IGR for the year amounted to just N25 million, describing it as “dismally low.”
He further noted that the agency’s capital performance for 2024 stood at 50%, with the remaining half of the budget yet to be released.
“We need to introduce more contemporary programs and improve funding mechanisms to better meet the demands of technical education,” Bugaje added.
The session underscored the lawmakers’ commitment to ensuring transparency and efficiency in funding allocations while challenging agencies to enhance their performance to secure additional resources.
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