During a press conference in Lagos on March 11, a customer and his solicitors discussed a lawsuit that has gone to court, and questions regarding value-added tax (VAT) charges on Moniepoint platform transactions were front and center.
Adebayo Ali Oluwafemi, who claimed to be a platform user, described what happened when speculation concerning VAT deductions applied to specific platform transactions started spreading online at a news conference held at the Excellence Hotel in Ogba, Lagos.
The problem started earlier this year, when Oluwafemi got a message from Moniepoint about VAT adjustments for specific financial expenses, according to Oluwafemi. Subsequently, he mentioned coming across a public announcement from the Nigerian Revenue Service shortly after, which stated that VAT on banking fees had not been implemented under current tax legislation. The apparent inconsistency quickly ignited discussions on the application of the VAT charges online.
In an address to the press, he explained, “As a customer, I simply wanted to understand why VAT was being applied to those charges when the public statement from the tax authorities suggested otherwise. The events that transpired, according to him, went beyond a standard consumer complaint.
Reporters were informed by Oluwafemi that he was arrested by police when they showed up at his home on February 18.His story goes like this: the cops showed up at his house and whisked him away without warning. He recounted his initial detention at Lagos’s Festac Police Division and subsequent transfer to Panti’s State Criminal Investigation Department (SCID), where he stayed for many days to request an explanation regarding the allegation levelled against him. He claimed to have discovered during interrogation that the complaint was associated with the Moniepoint platform’s talks of VAT charges.
Oluwafemi brought attention to the detention conditions by disclosing that he suffers from sickle cell disease during the press conference. He recounted being detained for days without the ability to consult with his attorneys as he attempted to comprehend the nature of the accusation levelled against him.
His stated goal was to enquire as a client. “I was not anticipating that voicing that worry would result in a citation.”
The event’s legal representatives have verified that the persons affected have been protected by filing a complaint under the Fundamental Rights Enforcement Procedure Rules with the High Court of the Federal Capital Territory in Abuja.
Legal representation contended that the case calls into question the extent to which Nigeria’s quickly developing digital finance sector respects consumers’ rights.
During the briefing, one of the legal representatives emphasised the vital need for transparency regarding financial costs in an ecosystem where millions of Nigerians depend on digital platforms for everyday transactions.
He went on to say that the purpose of the lawsuit is to get the right legal system to look into the concerns.
At the press conference, the broader consequences of the dispute were discussed, especially as fintech platforms are increasingly handling a larger portion of the country’s regular payments.
While millions of Nigerians have benefited from the convenience that digital financial services have brought, analysts have noticed that regulatory oversight, platform regulations, and transaction fees have come under more scrutiny due to the industry’s rapid rise.
“I believe customers should be able to ask questions about charges affecting their money,” Oluwafemi stated, maintaining his stance on the matter.
Additionally, he stated that the purpose of the press conference was to raise awareness of the matter and promote understanding on the VAT charges that caused the initial inquiry.
“Our goal is for there to be openness, and we expect the proper authorities to investigate the complained issues.”
The issue of how fintech platforms in Nigeria’s rapidly expanding ecosystem handle consumer disputes and how they communicate fees to customers is expected to come to light as the case progresses through the legal system.
The case is currently in court, but it has already started a dialogue about digital banking accountability, client rights, and transparency.