Point of Sale (PoS) operators across Nigeria have announced a 25 per cent increase in their service charges, attributing the hike to the recent implementation of the Electronic Money Transfer Levy (EMTL) by fintech platforms.
Effective December 2, 2024, PoS operators began adjusting their fees after receiving notifications from platforms like Opay, Moniepoint, and PalmPay about the N50 EMTL fee applied to every electronic transfer of N10,000 or more. The EMTL, which is a part of the Nigerian government’s efforts to streamline tax collection, was introduced following the 2020 Finance Act and is now being enforced by the Federal Inland Revenue Service (FIRS).
The levy, which applies to all electronic transfers, including mobile money, internet banking, and other digital payments, charges N50 for every transfer of N10,000 or above. It was initially set to begin on September 9, 2024, but was delayed following public backlash. However, the policy took effect on December 1, 2024, prompting a rise in charges by PoS operators.
In response to the new EMTL, PoS operators have raised their fees to account for the additional N50 charge they incur per transaction. According to Olugbenga Toki, a PoS operator, the price increase is necessary for the sustainability of their business. “We have to raise our charges because we now bear the cost of the N50 EMTL, and if we don’t adjust, we will be at a loss,” Toki explained.
While the PoS operators are passing on the cost to customers, some have raised their fees by as much as N25 for every N10,000 transaction. For example, PoS operator Adedayo Adeleke has adjusted his fee from N100 to between N125 and N150 for the same amount, depending on the destination of the funds.
The fee hikes are not only due to the EMTL but are also influenced by the ongoing cash scarcity. Many PoS operators source cash through alternative channels such as market women and petrol stations, where prices for cash have surged. These rising operational costs have further impacted their ability to offer affordable services to customers.
Despite the increase, many PoS operators are facing mixed reactions from customers. Some have accepted the new fees, understanding that the changes are linked to the EMTL, while others are dissatisfied and choose to go elsewhere. However, PoS operators stress that the adjustments are necessary to cover the extra charges imposed on them by fintech platforms and to remain profitable in an increasingly difficult market.
The introduction of the EMTL marks a significant shift in Nigeria’s digital payment landscape, aiming to streamline revenue collection while also creating challenges for PoS operators and customers alike.
