PRP slams N50 levy on Bank transactions amid economic hardship

The Peoples Redemption Party (PRP) has strongly criticized the Federal Government’s decision to impose a N50 electronic transfer levy on bank transactions exceeding N10,000, calling it an undue burden on already struggling Nigerians.

In a statement released on Tuesday by the party’s Acting National Publicity Secretary, Comrade Muhammed Ishaq, the PRP described the levy as a poorly timed and insensitive measure, particularly in light of the economic difficulties caused by recent policies, including the removal of fuel subsidies and other reforms.

The electronic levy, set to commence on December 1, 2024, applies to transactions conducted through banks and financial technology platforms such as Opay and Moniepoint.

According to the PRP, this decision exacerbates the financial strain on citizens grappling with inflation, high living costs, and diminished purchasing power.

“The levy is a flagrant display of insensitivity to the plight of ordinary Nigerians,” the statement read. “Daily, families are forced to choose between paying for essentials or foregoing basic needs. Adding this levy only deepens their economic suffering.”

The PRP also expressed concern that the levy would discourage low-income earners from participating in the banking system, undermining efforts to expand financial inclusion in the country.

Economic analysts share the PRP’s concerns, noting that the timing of the levy could erode trust in the banking sector and worsen financial exclusion.

READ ALSO: OPay, Kuda, others start N50 levy on transfers above N10,000

Dr. Chijioke Amadi, a public finance expert, argued, “While governments need to boost revenue, imposing such levies during economic hardship is counterproductive. It risks driving cash-based transactions, reversing gains made in digitizing the economy.”

Similarly, financial technology expert Amina Yusuf highlighted potential challenges for fintech platforms, which have been pivotal in reaching underserved populations.

“This levy might deter small-scale users from these platforms, impacting growth in the sector and financial access for many Nigerians,” she said.

The PRP called on the Federal Government to halt the implementation of the levy and focus on more compassionate economic policies.

The party urged the administration to provide relief measures for citizens and prioritize policies that stimulate economic growth rather than imposing additional financial burdens.

“This is not the time for punitive measures. The government must recognize that citizens deserve compassion and relief in these trying times,” the statement concluded.

The introduction of the N50 levy has sparked widespread debate about the government’s revenue-generation strategies amid a fragile economy. While the Federal Inland Revenue Service (FIRS) justifies the measure as part of its revenue drive, critics argue that such policies risk deepening poverty and stifling economic recovery.

The PRP’s call for collective action against the levy underscores growing public discontent. As implementation looms, the spotlight remains on the Federal Government’s next steps in addressing these concerns while balancing its fiscal goals.