By Sulyman Pakoyi, Mujeebah Shittu & Omowumi Oyewumi

The Federal Government has commenced N50 electronic levy deductions from transactions of N10,000 and above made by users of financial technology (Fintech) companies, including Opay, Moniepoint, Kuda, and others. The implementation has sparked diverse opinions among Nigerians. While some users appreciate the reliability and convenience offered by these platforms, others criticise the policy for its economic burden on already struggling citizens. Below is a collection of views from individuals across different walks of life, highlighting the benefits, challenges, and broader implications of the levy.

Waliyat Adenike

Opay and fintech banks are one of the best banking solutions in the country. My positive opinion is that using their bank to make transactions is convenient and free charges on the first three transactions make it easy to use. Moreover, it is not their fault. They are complying with CBN directives. Although, they should be more transparent on why they are deducting the money.

This practice can also be seen as burdensome to individuals, particularly for low-value transfers, as it reduces the money the beneficiary receives. The impact of such charges is more significant for people who rely on micro-transfers, where small amounts of money are being sent for everyday needs.

For recipients in lower-income brackets, even small deductions can have a relatively larger negative effect, diminishing the overall utility of the transfer. I dont think the new charges of N50 on every transfer is okay in this kind of economic situation. With the high poverty rate in the country right now, the governments are not considering the larger citizens of this country. There is a better situation at hand than this outrageous policy.

It’s actually very unnecessary. Nigerians are already going through a lot, courtesy of the recent harsh economic policies, a lot rely on this micro banks, simply because they’re efficient network wise and also don’t extort unlike the commercial banks. It’s an unreasonable move by the CBN and we hope they overturn it.

If Opay, Moniepoint, Palmpay,  Kuda and other online banks are deducting N50 levy fees for N10,000 withdrawal, it doesn’t make any sense, because most of the commercial banks, like Union banks and VFD deduct N10 or N20 for each transaction. If Opay, Moniepoint, Kuda, Palmpay  continue with the N50 charges, then, what I see in the future is that many people will definitely leave Opay, Moniepoints, Kuda, and Palmpay, to another app that doesn’t take as much as that. It will discourage so many people.

 “That is a new instruction given to them by the CBN and it is a great idea. Those banks are under CBN and these banks have their commission which they will pay to the CBN. CBN gives them instructions on what to do and not to do. Without the deductions, these banks can easily fold up.” 

I feel it’s not necessary and it’s just a way of making more money out of the less privileged.

“I actually think it’s unfair to the customers because they’ll feel the brunt the most.
Take for instance, when you try to withdraw from PoS, the operator will remove charges, while the bank will still deduct N50 in the name of stamp duty.
The slight difference between the fintechs and traditional banks is now that, you can walk into any traditional bank to withdraw or fill teller to transfer money. But it’s not the same with the fintech banks.

The primary reason we use mobile money applications like OPAY is because of their convenience, affordability, and user-friendly interface. Most people have switched to these apps for their financial transactions due to these benefits.
However, it’s disappointing to see OPAY now charging transfer fees. While we understand that CBN’s policies have led to this change, we urge OPAY to reconsider this update and explore alternative solutions that don’t burden their users. We hope they will review this decision and continue to provide the seamless experience we’ve come to expect from their service.

Deducting N50 per N10,000 transaction is good because they are fast and reliable, unlike some commercial banks with network issues and unnecessary charge. Queuing at the banks when having issues is another problem entirely. So, deducting N50 is worth it and it’s a great idea.

“I don’t think it’s a bad idea if microfinance banks charge for their electronic services. As long as I’m getting the service I need and seeing the output, I’m okay with it.
Commercial banks charge for electronic levies, maintenance fees, and yet you still have to go to the bank. They take forever, to resolve issues, sometimes up to seven (7) working days. Microfinance banks are different. Most times, you don’t even need to go to the bank for issues to be resolved.
Even if microfinance banks deduct levies, I think it’s fair as long as they provide proper service. They need to make profits, and I often wonder how they manage without charging. Even with the charges, they don’t charge as much as commercial banks.”

“The challenges we encounter from our conventional banking system is enough, now that we have the fintech companies taking up the space and easing the burden for ordinary Nigerians.
We don’t need policies that will wreck their business, but the ones that will promote them to effectively and efficiently give qualitative services.
They should also encourage the conventional banking system to improve their digital services. If there will be need for collaboration (between conventional banks and the fintech companies), then, we should have it. This will not in any way disrupt what gains they want in the long run, but further strengthen service delivery.