diff --git a/precompiles/erc20/tx.go b/precompiles/erc20/tx.go
index 173ca6cc0..f1ed409f2 100644
--- a/precompiles/erc20/tx.go
+++ b/precompiles/erc20/tx.go
@@ -87,14 +87,12 @@ func (p *Precompile) transfer(
 	newAllowance := big.NewInt(0)
 
 	if isTransferFrom {
-		spenderAddr := contract.Caller()
-
 		prevAllowance, err := p.erc20Keeper.GetAllowance(ctx, p.Address(), from, spenderAddr)
 		if err != nil {
 			return nil, ConvertErrToERC20Error(err)
 		}
 
-		newAllowance := new(big.Int).Sub(prevAllowance, amount)
+		newAllowance = new(big.Int).Sub(prevAllowance, amount)
 		if newAllowance.Sign() < 0 {
 			return nil, ErrInsufficientAllowance
 		}