Government’s N50 EMTL war on people’s purse

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 with excessive taxation to questionable government spending, which leaves “the children of Satan envious” when it comes to practicalising wickedness!

So, what exactly is EMTL- (Electronic Money Transfer Levy), an imposition or extortion of a N50 charge on every electronic money transfer of N10,000 or more. The levy applies to transactions conducted through banks, fintech platforms, and other financial institutions. Exemptions was supposed to include transfers below ₦10,000, transfers 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 humanitarian purposes.

Section 89A of the Finance Act 2020, “a slap in the face of the people” law, gave the Federal Inland Revenue Service (FIRS) the Totalitarian right to administer it while the minister of finance the sole authority to regulate its exaction, carving 35 per cent 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” situations 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), emphasise that every citizen shall have equality of rights, obligations and opportunities before the law. While Section 42, gave Nigerians right to freedom from discrimination.

The lack of infrastructure and technological skills of implementers of the scam to operationalise the EMTL is another cruel and oppressive tendencies meted out on Nigerians which is a stark affront to Section 44, the right to property, of the Nigerian Constitution, as both transfer and receipt of amounts of N10,000 and above into same or different entity’s account in different banks attract this Satanic Charge thus amounting to ‘‘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 is 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 Quick teller) 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 based on available data and market insights in July 2024, NIBSS recorded an all-time high of N89.5 trillion in electronic payments as reported in September 2024. Figures from Interswitch and System Specs for same period is a challenge. The infrastructure to determine how many businesses and individuals did N10,000 and above daily is surely above their capabilities.

Other un-welcomed issues related to this draconian EMT levy are: It has already increased transaction costs, disproportionately affected low-income earners who are about 85 per cent of Nigerians, disproportionately affects individuals and businesses with frequent low-value transactions, exacerbate the economic hardships in a country already grappling with inflation and high unemployment additionally, it lack transparency, accountability, and a clear framework for utilisation of the proceeds of the loot or how this loot will support economic development.

Lest we forget, other fees and charges levied on hard earn 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 Numbers charges etc.

These numerous charges have significantly impacted the financial well-being of individuals and businesses, especially those with low incomes. And have eroded their savings, increased their cost 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 saddle with direct responsibility of managing the affairs of Nigeria and her citizens enjoy humongous salaries, allowances, and perks.

These include wardrobe, furniture allowances, car loans, newspapers, housing stipends, brand-new SUVs, fuelling, out-station-allowances, sitting allowances and 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 Nigeria’s economic challenges:

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, implementation concerns and open doors of cronyism.
Climate of uncertainty: Unemployment, inflation, and the rising cost of essential goods have left many Nigerians in dire straits. Flight of international companies exiting 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 like 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 instead fuelling corruption and mismanagement.

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 a lack of transparency.

The proposed despotic VAT increase and other dictatorial tendencies: Plans to increase the Value-Added Tax from 7.5% to 15% by January 2025 will further strain the purchasing power of citizens, disproportionately impacting the poor and translating into higher costs foreveryday essentials, further eroding the disposable income of Nigerians already battling inflation and economic hardship.

There is currently no cash in the banking halls nor at the ATMs, yet we are told that there is 4.3 trillion of raw naira notes in circulation. Meanwhile, the N50 blues go on and the POS agents are having a field day charging their clients based on whims and caprices.

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 did to deserve N50 from every N10,000 and above transfer made by an entity to another entity?

Is it the tattered Kaduna to Abuja road or dilapidated government schools or the new craze of sweeping all LG poll 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 gave government the right to Toll-Collect, this satanic ₦50 from the accounts of 85% of innocent and hard working Nigerians who happen not to be in government at whatever 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 they are victims of!

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.

Rabiu, a monitoring and evaluation specialist on policy, finance, risk, politics, good governance, and an advocate for sustainable development, wrote from Kaduna.