Reverse N50 Fintech Charges On N10,000 And Above - NANS to FG

 

The Senate Clerk of the National Association of Nigerian Students (NANS) National Headquarters, Oladimeji Uthman has sent a message to the federal government.

 

NANS warned FG to reverse the newly introduced Electronic Money Transfer Levy.

 

In a statement signed by Uthman, 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.

 

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

 

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. This levy, directed to the Federal Government via the FIRS, does not benefit the fintech companies themselves.

 

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.

 

Fintech platforms have been praised for their low-cost and efficient services, making financial transactions more accessible to students.

 

However, this new levy could undermine these benefits, potentially driving students away from digital financial services and back to less secure cash-based transactions.

 

The EMTL also affects regular transactions such as payments for accommodation, course materials, and other school-related expenses.

 

This means that students will lose a portion of their funds to the levy each time they receive money above the N10,000 threshold, further straining their financial resources.

 

NANS expressed concerns that the new levy could lead to delays and increased costs in the education sector, hindering timely access to critical funds for students.

 

The association plans to advocate against the levy, leveraging the influence of the student body to pressure the government to reconsider or modify the policy.

 

NANS calls on the Federal Government and the FIRS, under the leadership of Mr. Zaccheus Adedeji, to reconsider the implementation of this levy, particularly in light of its impact on the education sector.

 

They urge the government to prioritize policies that support the financial well-being of students and to engage with fintech companies to find alternative measures that do not disproportionately affect students and Nigerians.

 

NANS reaffirms its commitment to protecting the interests of Nigerian students and will continue to advocate for a more equitable and supportive educational environment.