KEY POINTS
- NANS demands reversal of N50 transfer levy on fintech platforms.
- Students argue the levy will worsen their financial struggles.
- The policy affects over 40 million Nigerian students relying on fintech services.
The National Association of Nigerian Students or NANS is urging the federal authorities to cancel a new N50 that has been put on the transfer levy in electronic transactions.
Approved by the Central Bank of Nigeria to commence on September 9 2024 it will reduce any amount over N10000 transferred through such fintech firms like OPay and Moniepoint by a charge of N50. This fee, which was initially applicable to commercial banks only, has been taken up by fintech firms raising concern among Nigerian students.
Some of the students who spoke through the Senate Clerk of NANS, Oladimeji Uthman made this assertion in a statement reacting to the new charge of electricity bill.
Uthman pointed out that as far as the policy is concerned it directly affected citizens especially students and other individuals who depend on the fintechs for cheaper financial services.
The majority of them had been providing their services at minimal or even without any charges, which has made many people get some sense of comfort that there are cheap banking services.
Impact on students
The introduction of the N50 levy hits particularly hard for Nigeria’s 40.1 million students. Some made electronic transfers to pay fees for children or spouses and buy books and other necessities for school and other basic needs.
A new charge could cut down the so much required cash for such needs to the extreme minimum. The existing situation is even worse given that students experience a problem of steadily increasing costs of education and living.
Specifically on this levy, Uthman in the statement said: “This levy is paid to the Federal Government through the Federal Inland Revenue Service (FIRS), and not the fintech companies per se.” This implies OPay and Moniepoint will not gain from this new charge even though their consumers will be squarely saddled with this new cost.
Calls for policy reversal
Uthman appealed to the government to abandon this move stating that there are better ways of raising revenue without having to tax students and the populace.
He pointed out that it would be better for the nation to spend on long-term benefits such as agriculture, infrastructures, education and job creation instead of forcing citizens to pay directly through taxes.
In this regard, Uthman stated thus: “The government has to look for other ways of sourcing its revenue sustainably.” Likewise, many Nigerians agreed that the levy is unnecessary, unhelpful, and counterproductive.
