The recent decision by the Federal Government to introduce a N50 Electronic Money Transfer Levy on transactions has faced criticism from economists. They argue that this levy could discourage digital transactions and have negative effects on the economy. The levy will be applied to any inflow of N10,000 or more received by customers of fintech companies. Economists warn that this move might harm the fintech sector, which has been experiencing rapid growth.
Economists like Marcel Okeke and Alias Aliyu believe that the government’s aim to increase revenue through this levy could backfire by deterring people from using digital services, potentially leading to economic repercussions. They suggest that focusing on regulation rather than imposing additional fees would be more beneficial, especially considering the current economic conditions and cybersecurity threats faced by fintech companies.
The growth of digital transactions in Nigeria, driven by fintech companies, has been significant in providing accessible and convenient solutions, especially for the unbanked population. However, the introduction of the Electronic Money Transfer Levy could hinder this progress and impact millions of Nigerians who rely on these services for their daily financial needs.
Despite the government’s successful revenue generation from the Electronic Money Transfer Levy, there are concerns about the timing and implications of this move. Economists and stakeholders, including the National Association of Nigerian Students, are calling for a reconsideration of this policy to avoid further financial burdens on students and the general population. They urge the government to explore alternative revenue sources that promote long-term development rather than immediate taxation.