- POS operators criticize the Electronic Money Transfer Levy, stating it negatively impacts profit margins and may force them to increase customer charges
- The N50 charge on transfers over N10,000 has led to dissatisfaction, with operators urging the government to reduce the new tariff
Point of Sale (POS) operators have criticized the implementation of the Electronic Money Transfer Levy (EMTL) on their transactions, stating that it has negatively impacted their profit margins due to the current charges they apply to customers.
The levy, which became effective on Monday, imposes a charge of N50 on transfers over N10,000 made by fintech account holders, similar to the charges applied to Deposit Money Banks (DMBs) customers.
POS operators charge N100 for transactions below N5,000 and N200 for transactions up to N10,000. However, with the newly introduced levy, they may need to review and potentially increase their charges.
Kingsley Aziha, a POS operator using Palmpay, expressed his dissatisfaction, noting that the charges deducted under the new EMTL have affected his profit margin. He urged the government to reduce the newly imposed tariff, hinting at a possible increase in customer charges. “We collect N100 on every transaction and cannot tell customers to pay N120 or N150,” he said.
Awele Okafor, who uses both Moniepoint and Firstmonie, noted that Moniepoint had already increased its tariff while Firstmonie had not yet. She added, “They were already charging N20 before, but now I find out it’s not cheaper when someone transfers to me.” She also appealed to the government to lower the tariff.
Conversely, Ebenezer Adeyi, an Opay user, said, “I like their program; they do not deduct money unnecessarily on Opay. I don’t know about other service providers; I only use Opay.”
Professor Adebayo Adams, Chairman of the National Association of Small and Medium Enterprises (NASME), voiced concern over the levy, stating that small businesses cannot survive under the new charges. “This is the only thing the masses enjoy, and it’s like putting salt on the wound. We condemn it in totality and do not support it,” he said.
He emphasized that the EMTL policy on fintechs is not friendly to the masses, adding, “If you charge me when I transfer, why are you charging the person receiving it?”