FG begins implementation of Electronic Transfer Levy, debits millions of Nigerians accouns

The Nigerian government have begun the implementation of the Electronic Transfer Levy which was recently signed by the Minister of Finance, Budget and National Planning, Zainab Ahmed.

Ahmed signed the regulation pursuant to Section 89A(3) of the Stamp Duties Act Cap. S8, Laws of the Federation of Nigeria, 2004 as amended by the Finance Act of 2021.

The regulation provides guidance for the imposition, administration, collection and remittance of the Electronic Money Transfer Levy contained in the 2020 Finance Act

According to reports, the regulations provide for a single and one-off levy of N50 on the recipient of any electronic transaction on N10,000 or above.

For any equivalent of receipts carried out in other currencies, the levy will be charged at the exchange rates determined by the Central Bank of Nigeria (CBN).

The regulation appoints the Federal Inland Revenue Service (FIRS) as the administrator of the Levy with the responsibility to check, collect and give an account of the levy.

It also mandates receiving banks to collect and remit to the FIRS within 24 hours or the next working day. The receiving bank is required to deduct the levy across the account in the event that the customer does have a bank account with the bank.

Many Nigerians raised alarm when they saw that their accounts were debited with various sums.

The debit took them unaware as there has been no mention of the levy in any media reports.

According to them, the levy is against the cashless policy of the CBN and will encourage cash transactions. KPMG, the audit and tax advisory company commended the Minister of Finance for the implementation of the Levy.