The umbrella body of Nigerian students, home and abroad, the National Association of Nigerian Students (NANS) has called on the Federal government and its agencies to reverse the newly introduced electronic money charged by Fintechs.
Recall that the federal government announced the imposition of a deduction of N50 Electronic Money Transfer Levy (EMTL) from every inflow of N10,000 and above received by customers of Fintech companies, including Opay, Moniepoint, and others.
The Senate Clerk of the National Association of Nigerian Students, National Headquarters, Oladimeji Uthman, in a statement said the new lev may impact 40.1 million students and expressed resentment on the new policy, which mandates a N50 deduction on every electronic transfer of N10,000 and above through fintech companies.
According to him, the policy that is set to take effect on September 9, 2024, will further exacerbate 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.
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.
He said, ” Many Nigerian students rely on transfers from family, scholarships, or part-time work to support their education and daily expenses. The introduction of this levy will add an extra financial burden, especially for those who receive multiple transactions, as each inflow above N10,000 will attract the N50 charge.
“This could potentially reduce the amount of money they have available for essential needs such as school fees, textbooks, and living expenses.
“Undermining the Purpose of Fintech: The primary appeal of fintech platforms has been their low-cost and efficient services, which have made financial transactions more accessible to students. The new levy undermines this benefit, making these platforms less attractive and potentially driving students away from digital financial services, contrary to the government’s stated goal of encouraging electronic transactions.
“Discouragement of Digital Banking; Fintech companies have been instrumental in promoting digital banking among young Nigerians, including students, by offering cost-free transactions and ease of access. This new levy may discourage students from using these platforms for their financial transactions due to additional costs, pushing them back to cash-based transactions, which are less secure and more cumbersome.
“Impact on Small Transactions; While the levy targets inflows of N10,000 and above, it affects regular transactions such as payment for accommodation, course materials, and other school-related expenses. For students, this means that every time they receive money above this threshold, they lose a portion to the levy, reducing the effective value of their funds.
“Negative Impact on Educational Growth; The education sector thrives on the seamless flow of resources, whether in the form of tuition payments, student allowances, or financial aid disbursements. The imposition of the EMTL on these transactions could lead to delays and increased costs, hindering the timely access to funds that are critical for the academic success of many students.
“Potential for Advocacy; The dissatisfaction voiced by NANS could lead to advocacy campaigns against the levy. As Nigerian Students, we remain the largest and influential group in the country and our collective position could pressure the government to reconsider or modify the just introduced EMTL policy. This could also spark broader debates on fiscal policies and their impact on ordinary citizens, particularly the Nigerian Students and Youth.
NANS called on the Federal Government and the Federal Inland Revenue Service under the chairmanship of Mr. Zaccheus Adedeji to reconsider the implementation of this levy, especially in the context of its impact on the education sector.
The statement added, “We urge the government to prioritize policies that support, rather than hinder, the financial wellbeing of students. The education sector is already under immense pressure, and additional financial burdens will only exacerbate the challenges faced by Nigerian students.
“We also call on all fintech companies to engage in dialogue with the Federal Government to explore alternative measures that do not disproportionately affect students and Nigerians at large,” NANS stated
It added, “NANS remains committed to advocating for the interests of Nigerian students and will continue to oppose policies that threaten their financial stability and access to education.
“The Office of the Senate Clerk, NANS National Headquarters, reaffirms its commitment to protecting the interests of Nigerian students. We stand firmly against any policy that imposes unnecessary financial burdens on students, and we will continue to advocate for a more equitable and supportive educational environment in Nigeria.”
