Point-of-Sale (PoS) operators across Nigeria have raised their withdrawal fees, charging between ₦150 to ₦200 for every ₦5,000 transaction, up from the previous rate of ₦100.
The operators attribute this increase to the ₦50 Electronic Money Transfer Levy (EMTL) imposed by the Federal Inland Revenue Service (FIRS) on financial technology (fintech) companies.
In September, fintech firms announced their intention to apply the ₦50 levy on transactions of ₦10,000 and above, citing compliance with FIRS regulations.
This levy is a one-time charge on electronic transfers or receipts of ₦10,000 or more into both personal and business accounts via any commercial bank or financial institution.
The federal government officially enforced the policy on December 1, compelling major fintech platforms like OPay, Moniepoint, Kuda, and others to implement the charge.
Why the Hike in PoS Charges?
Speaking to TheCable, Sarafadeen Fasasi, National President of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), confirmed that the levy had triggered an adjustment in PoS transaction fees.
“Yes, it is because of the electronic levy. We have to transfer the cost of the charges being imposed. It started immediately after FIRS implemented the directive for the ₦50 charge,” Fasasi explained.
Clarifying the ‘Stamp Duty’ Policy
Fasasi further noted that the stamp duty itself is not a new policy but that its implementation had been inconsistent. Previously, only bank-affiliated PoS agents were charged the ₦50 levy.
However, the policy has now been extended to fintech companies, which control about 70% of the PoS market.
Fasasi stated, “Stamp duty is not new but the implementation has been partial. Only agents that are of banks origin… you know we have two types of agents. There are agents that are deployed by commercial banks, the UBA, Zenith and we have those that are of non-banks, that are of fintechs, like OPay, Moniepoint, Paga and Palmpay.
“Before now, only bank agents that are of bank origin are being charged N50 because the bank has implemented it for long. But now, the regulator has now extended it that whether you are fintech or anything, just go and charge that N50. So immediately they started… and you know they control the larger part of the agent space, about 70 percent. That is why it’s like a new policy.
“It is not a new policy but it’s because it is now being implemented by the majority of fintech. Then, the PoS agents have no choice than to also implement it immediately.”