By Dayo DaSilva

I woke up this morning to see on my Opay account application that a deduction of N50 was made on money above N10, 000 transactions into my wallet.

I was surprised, because I thought the Federal government had perished the thought not knowing that it was shifted to start from December 1 of this year. Of course this is another additional burden looking at the various charges and deductions customers are exposed to.

Common charges in Nigeria's banking sector include maintenance fee, account opening fee, ATM withdrawal fee, ATM card maintenance fee, interbank transfer fee, electronic transfer fee, SMS alert fee, statement of account fee, card replacement fee, Value Added Tax (VAT) and commission on Turnover (COT) among others depending on the kind of account.

This recent introduction of the Electronic Money Transfer Levy has left many Nigerians reeling. The deduction of N50 on all money transfers above N10,000 is just another addition to the numerous charges and deductions that customers are already subjected to. This move by the APC-led government is a clear example of its anti-people policies, which continue to burden Nigerians and stifle economic growth.

The lack of an enabling environment for businesses to thrive is a major concern. The government's failure to provide basic infrastructure, such as stable electricity, security and good roads, has led to increased costs of doing business in Nigeria. This, in turn, has resulted in higher prices of goods and services, further exacerbating the suffering of the average Nigerian.

The obnoxious banking charges are another issue that needs to be addressed. Nigerians are already struggling to make ends meet, and the additional burden of banking charges is simply unacceptable.

The Electronic Money Transfer Levy (EMTL) no doubt may discourage people from using electronic transfer services, leading to a shift back to cash-based transactions. This could undermine the government's efforts to promote a cashless economy.

The EMTL may lead to increased costs for businesses that rely heavily on electronic transactions, such as online retailers, fintech companies, and banks. These costs may be passed on to consumers, leading to higher prices while the levy may disproportionately affect low-income individuals and those in rural areas who rely on electronic transactions to access financial services.

This could exacerbate financial exclusion and inequality. Small and Medium-sized Enterprises (SMEs) may be disproportionately affected by the EMTL, as they often rely on electronic transactions to manage their cash flow and operations.

Nigeria's financial system could be less competitive compared to other countries, potentially deterring foreign investment and hindering economic growth while the levy may lead to increased tax evasion, as individuals and businesses seek to avoid the additional costs associated with electronic transactions, this may negatively impact the growth of e-commerce in Nigeria, as consumers may be deterred by the additional costs associated with online transactions and the levy may reduce access to digital financial services, such as mobile money and online banking, which are critical for financial inclusion and economic development.

The government needs to take a closer look at the banking sector and regulate the charges to ensure that they are fair and reasonable.

The Electronic Money Transfer Levy is just another example of the government's insensitivity to the plight of Nigerians. At a time when many are struggling to survive, the government is introducing new levies and charges that will only serve to increase the burden on the people.

It is time for the government to rethink its policies and prioritize the needs of the people. The APC-led government needs to recognize that its anti-people policies are not only hurting Nigerians but also stifling economic growth and development.

I cannot but urge the government to take a more people-friendly approach and work towards creating an enabling environment for businesses to thrive and for Nigerians to live a better life.

 

Dayo DaSilva (arpa, amncs) is a Mass Communication Expert, Brand Strategist and Growth Manager from Ogun State.

Email: dsv123ng@yahoo.com