OPay, a leading financial technology firm in Nigeria, has announced plans to implement a N50 stamp duty fee on transactions of N10,000 and above starting from Monday, September 9, 2024.
In a notice to customers on Saturday, OPay stated that this move is in compliance with the Federal Inland Revenue Service (FIRS) regulations. The stamp duty or electronic money transfer levy (EMTL) is a one-time charge of N50 on electronic receipts or transfers of money deposited in any commercial bank or financial institution for sums of N10,000 and above.
OPay clarified that the deductions would be applied to electronic transfers into both personal and business accounts. "Dear valued customers, please be informed that starting September 9, 2024, a one-time fee of N50 will be applied for electronic transfer of N10,000 and above paid into your personal or business account in compliance with the Federal Inland Revenue Service regulations," the statement read.
The company emphasized that it does not benefit from these charges, as the fees are entirely directed to the Federal Government. "It is important to note that OPay does not benefit from this charge in any way as it is directed entirely to the Federal Government," OPay added.
This new stamp duty fee was introduced through the 2020 Finance Act, signed by the former President Muhammadu Buhari on December 31, 2020. The act imposed a levy of N50 on electronic receipts or transfers of sums of N10,000 and above.
In July 2022, Kuda Microfinance Bank was among the first financial institutions to introduce the stamp duty on all deposits of N10,000 and above, in line with the new regulations.
The implementation of this stamp duty fee by OPay is part of a broader effort by the Nigerian government to increase revenue collection through various financial regulations. While it may impact customers' transactions, the fee is designed to contribute to the country's overall financial framework.
As a leading fintech player, OPay's decision to comply with the FIRS regulations underscores the company's commitment to operating within the legal and regulatory boundaries set by the Nigerian authorities. Customers are advised to plan their transactions accordingly to account for the additional N50 stamp duty charge on transfers of N10,000 and above.
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