Stanbic IBTC Sends Message as FG Begins Charging Electronic Transfer Levy on Domiciliary Accounts

• Nigerian banks have started charging Electronic Transfer Levy (EMTL) on domiciliary accounts
• The move comes as banks such as Stanbic IBTC began sending messages to customers over the development
• In December 2022, the finance minister signed the EMTL regulations into law.

Nigerian banks will start to charge N50 as an electronic transfer levy from dollar or pound accounts.

The development comes as Stanbic IBTC, one of Nigeria’s commercial banks, said it will begin deducting the sum of N50 on transfers into domiciliary accounts.

Stanbic IBTC notifies customers

The bank, in an email, notified its customers of the development on Wednesday, March 8, 2023.

The bank stated that the new levy would take effect immediately following the Electronic Money Transfer Levy (EMTL) regulation by the Minister of Finance, Budget and National Planning, Zainab Ahmed.

Read also

CBN asks banks to obtain customer's permission before sharing personal data in new operational guidelines

Stanbic IBTC said it would charge customers with domiciliary accounts an equivalent of N50 as EMTL at an exchange rate set by the Central Bank of Nigeria (CBN).

The development means that customers with dollar or pound accounts would be charged an equivalent amount of N50 for inflows, TheCable reports.

Stanbic IBTC said:

“We write to notify you of recent changes impacting electronic money transfer transactions,” the financial institution said in the email.

“The honourable minister of finance, budget, and national planning recently issued the electronic money transfer levy (EMTL) regulation.

“Based on the regulation, the EMTL levy at the foreign currency equivalent of N50 is now applicable on transferring funds into domiciliary accounts.

“The exchange rate determined by the Central Bank of Nigeria shall be the applicable conversion rate.

“In view of the above, please note EMTL shall apply to qualifying inflows into domiciliary accounts with immediate effect.”

Read also

INEC: BVAS failed in presidential poll due to transfer of ICT boss? Update emerges

In December 2022, the finance minister signed the EMTL regulations into law.

Former Stamp Duty now known as EMTL

The regulation allows for a single and a one-off deduction of N50 on the receiving account of any electronic receipt of N10,000 or above.

For transfers done in other currencies, the banks will charge the equivalent of N50 rates to be determined by CBN.

The law was introduced to provide guidelines for the imposition, administration, collection, and remittance of EMTL contained in the 2020 Finance Act. The EMTL was formally known as Stamp Duty.

Analysts believe the move will cause inflation as importers and small businesses will add the cost to their services.

Until now, only naira accounts have been debited by the federal government as Electroonic Transfer Levi every week for transfers of N50 into the recipients accounts.

FG begins implementation of Electronic Transfer Levy regulation 2022, debits millions of Nigerians

Read also

MTN Nigeria successfully Raises N125 billion through Commercial Papers to fund operations

Legit.ng reported that the 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.

The regulation provides guidance for the imposition, administration, collection and remittance of the Electronic Money Transfer Levy contained in the 2020 Finance Act.

Source: Legit.ng