NANS demands reversal of Fintech’s N50 transfer levy

The Senate Clerk of the National Association of Nigerian Students, National Headquarters, Oladimeji Uthman, has called on economic managers to reverse the newly introduced electronic money charged by Fintechs.

In a statement signed by Uthman on Sunday, he voiced strong opposition to the new policy, which mandates a N50 deduction on every electronic transfer of N10,000 and above through fintech companies.

However, the policy set to take effect on September 9, 2024, is seen as exacerbating the financial burdens on Nigerian students and the general populace.

The Senate clerk said the new levy previously applicable only to commercial banks, now extends to fintech platforms such as OPay and Moniepoint, ending the era of free banking services that many of these companies offered.

“The levy directed to the Federal Government via the FIRS does not benefit the fintech companies themselves,” he stated.

Uthman urged the Federal Government to explore alternative revenue sources, such as investing in agriculture, quality education, infrastructure development, and job creation, rather than imposing additional financial burdens on students and ordinary citizens.

“This sentiment reflects a broader discontent among students who believe that government revenue strategies should focus on long-term development rather than immediate taxation.

“The proposed N50 Electronic Money Transfer Levy (EMTL) impacts over 40.1 million Nigerian students who use these fintech services. Many students rely on financial transfers for their education and daily expenses, and the new levy could significantly reduce the funds available for essential needs such as school fees, textbooks, and living expenses,” the statement read.