… issues related to this draconian EMT levy are that it has already increased transaction costs, disproportionately affected low-income earners who are about 85 per cent of Nigerians, unfairly affects individuals and businesses with frequent low-value transactions, exacerbates the economic hardships in a country already grappling with inflation and high unemployment, while it also lacks transparency, accountability, and a clear framework for the utilisation of the proceeds of the loot or how this loot will support economic development.
Nigeria, a nation brimming with potential, finds itself in a precarious economic bind and grappling with a series of implemented policies and practices that seem designed to further pauperise and exacerbate the burden of its citizens, from excessive taxation to questionable government spendings, which leaves “the children of Satan envious” when it comes to practicalising wickedness.
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So, what exactly is EMTL (Electronic Money Transfer Levy)? This is an imposition or extortion of a ₦50 charge on every electronic money transfer of ₦10,000 or more. The levy applies to transactions conducted through banks, fintech platforms, and other financial institutions. Exemptions to this were supposed to include transfers below ₦10,000, between accounts of the same owner or within the same financial institution, intra-account transfers within the same bank, and transactions involving government accounts or for humanitarian purposes. Section 89A of the Finance Act 2020, “a slap in the face of the people” law, gave the Federal Inland Revenue Service the totalitarian right to administer the levy, while the Minister of Finance, the sole authority to regulate its exaction, carving 35 per cent of the funds to local governments, 50 per cent to state governments and 15 per cent to the Federal Government, and auditing the inequitable collections. The Electronic Money Transfer Levy is precisely a “double whammy” and a “squeeze and squander” for Nigerians.
What is the constitutionality of the EMTL, its validity and alignment with the 1999 Constitution? Section 16(2)(c) emphasises that the economic system should not allow the concentration of wealth in a few hands or operate in a way that is harmful to the public interest of Nigeria. Section 17(2)(a) emphasises that every citizen shall have the equality of rights, obligations and opportunities before the law. While Section 42 gives Nigerians the right to freedom from discrimination.
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The lack of infrastructure and technological skills of implementers of the scam to operationalise the EMTL is another cruel and oppressive tendency meted out to Nigerians, as a stark affront to Section 44 of the Nigerian Constitution, on the right to property, as both the transfer and receipt of amounts of ₦10,000 and above into the account of the same or different entities in different banks attract this Satanic charge, thus amounting to a “Sophisticated Heist” by government. This is more glaring as the average daily individual bank account transactions in Nigeria within the threshold of ₦10,000 and above are not readily available from official sources, such as the Nigeria Inter-Bank Settlement System (owners of NIP inflow and outflow, Easy pay, NQR, Afrigo) or Interswitch (owners of Quickteller) or System Specs (owners of Remita) nor from the FIRS or NBS or the big masquerade, the Central Bank of Nigeria. That said, we can infer some trends on the basis of available data and market insights in July, with NIBSS’ record of an all-time high of ₦89.5 trillion in electronic payments, as reported in September 2024. Figures from Interswitch and System Specs for the same period is a challenge. The infrastructure to determine how many businesses and individuals transact ₦10,000 and above daily is surely above their capabilities.
Other un-welcome issues related to this draconian EMT levy are that it has already increased transaction costs, disproportionately affected low-income earners who are about 85 per cent of Nigerians, unfairly affects individuals and businesses with frequent low-value transactions, exacerbates the economic hardships in a country already grappling with inflation and high unemployment, while it also lacks transparency, accountability, and a clear framework for the utilisation of the proceeds of the loot or how this loot will support economic development.
Lest we forget, other fees and charges levied on the hard earned money of Nigerians through their bank accounts, including government-imposed charges, are: account maintenance charges, ATM charges, transfer fees, card maintenance fees, value added tax, SMS alert charges, ATM card charges, POS charges, stamp duty, bank verification number charges, etc.
…the introduction of the EMTL must be viewed in the broader context of the following economic challenges in Nigeria… Subsidy Removals: The removal of fuel and electricity subsidies has drastically increased living costs. The government’s introduction of Compressed Natural Gas (CNG) as an alternative has not alleviated these burdens but instead raised safety and implementation concerns, whilst opening the doors of cronyism.
These numerous charges have significantly impacted the financial well-being of individuals and businesses, especially those with low incomes. And eroded their savings, increased their costs of living, and hindered national economic growth.
A Tale of Two Nations
Giving the soaring cost of governance, while citizens keep tightening their belts, government and public officials, most especially those saddled with the direct responsibility of managing the affairs of Nigeria and its citizens, enjoy humongous salaries, allowances, and perks. These include wardrobe, furniture and newspaper allowances, car loans, housing stipends, brand-new SUVs, fuelling of these vehicles, out-station and sitting allowances, including extensive security details, etc. With the above perception, definitely fairness in public finance management is eroded. Therefore, the introduction of the EMTL must be viewed in the broader context of the following economic challenges in Nigeria:
- Subsidy Removals: The removal of fuel and electricity subsidies has drastically increased living costs. The government’s introduction of Compressed Natural Gas (CNG) as an alternative has not alleviated these burdens but instead raised safety and implementation concerns, whilst opening the doors of cronyism.
- Climate of Uncertainty: Unemployment, inflation, and the rising cost of essential goods have left many Nigerians in dire straits. The flight of international companies from Nigeria due to an unfriendly business environment, is further exacerbating the unemployment crisis, while a vicious cycle of corruption, impunity, and a lack of transparency further undermine confidence in the government’s ability to navigate these challenges.
- Borrowing Spree and Long-term Consequences: In addition to the EMTL, the Federal Government has been on a frequent borrowing spree that has reached alarming levels, with loans often approved almost on a bi-weekly basis by the National Assembly. Despite these borrowings, the intended positive impacts on infrastructure and public services are not evident, thus fuelling corruption and mismanagement instead.
- The #EndBadGovernance protest which sought accountability and justice, was met with severe repression. Instead of addressing the root causes of the protests, authorities detained underage participants and accused them of attempting to overthrow the government. This exemplifies a broader pattern of impunity, corruption, and lack of transparency.
- The Proposed Despotic VAT Increase and other Dictatorial Tendencies: Plans to increase the Value-Added Tax from 7.5 per cent to 15 per cent by January 2025 will further strain the purchasing power of citizens, unduly impact the poor, in a manner that translates into the higher costs of everyday essentials, further eroding the disposable income of Nigerians who are already battling inflation and economic hardship.
- There is currently no cash in the banking halls nor the ATMs, yet we are told that there are N4.3 trillion raw naira notes in circulation. Meanwhile the ₦50 blues go on and the POS agents are having a field day charging their clients on the basis of whims and caprices.
Is it the tattered Kaduna to Abuja road, dilapidated government schools, or the new craze of sweeping all local government polls by the ruling party in a state or the Lekki-Lagos-Calabar coastal highway that leads to nowhere, or the government hospitals that require patients to buy common Panadol or consultation cards etc, that gives government the right to collect this Satanic ₦50 from the accounts of 85 per cent of innocent and hard working Nigerians, who happen not to be in government at any level.
What if Google was owned by the Nigerian Government?
Technology is to make life easier and cheaper to live for humans but in Nigeria it looks like a platform for extortion of the Nigerian citizen.
What has the government of the day done to deserve ₦50 from every ₦10,000 and above transfer made by an entity to another one?
Is it the tattered Kaduna to Abuja road, dilapidated government schools, or the new craze of sweeping all local government polls by the ruling party in a state or the Lekki-Lagos-Calabar coastal highway that leads to nowhere, or the government hospitals that require patients to buy common Panadol or consultation cards etc, that gives government the right to collect this Satanic ₦50 from the accounts of 85 per cent of innocent and hard working Nigerians, who happen not to be in government at any level?
Nigerians must therefore uphold the sanctity of Section 22 of the 1999 Nigerian Constitution, as amended, which obliges the press and other agencies to hold the government accountable for its actions and inactions to the people. Anything short, Nigerians are complicit in the #EndBadGovernance that they are actually victims of!
In conclusion
To the proponents of the Muslim-Muslim tickets and their band of followers we say, reflect on the following Surah Aal-E-Imran (3:26) in the Holy Qur’an:
Qulillāhumma Mālika Al-Mulki Tu’tī Al-Mulka Man Tashā’u Wa Tanzi‘u Al-Mulka Mimman Tashā’u Wa Tu‘izzu Man Tashā’u Wa Tudhillu Man Tashā’u Biyadika Al-Khayru Innaka ‘Alá Kulli Shay’in Qadīr.
This verse emphasises that Allah is the ultimate source of power and authority. He grants leadership, dominion, or honour according to His wisdom and takes it away as He wills. It underscores the belief that human leadership or rulership is not independent but is subject to the divine decree of Allah.
Adamu Rabiu, a monitoring and evaluation specialist on policy, finance, risk, politics, good governance, and an advocate for sustainable development, writes from Kaduna.
