The Levy is part of the 2021 Finance Act signed into law by the Minister of Finance
The regulation mandates receiving banks to debit N50 for every N10,000 received
Minister of Finance, Zaniab Ahmed Credit: Bloomberg / Contributor Source: Getty Image
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.
Provisions of the Act 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 or 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. Nigerians raise alarm Many Nigerians raised alarm on social media on Sunday, January 8, 2023, when they saw that their accounts were debited with various sums