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- The Federal Government’s revenue from Electronic Money Transfer Levy increased by 107 per cent in December 2024
- The revenue grew from N15.046 billion in November to N31.211 billion in December 2024
- The increase is attributed to the implementation of a N50 Electronic Money Transfer Levy on transactions carried out on fintech platforms
The Federal Government’s revenue from Electronic Money Transfer Levy (EMTL) has increased by 107 per cent in December 2024.
According to the December revenue-sharing data released by the Federation Account Allocation Committee (FAAC), EMTL revenue increased from N15.046 billion in November to 31.211 billion in December 2024.
The increase in the EMTL revenue in December 2024, the highest monthly record, is attributed to the implementation of the N50 transfer levy on transactions made on fintech platforms.
The FAAC revenue shared among the federal, state, and local governments in December 2024 was N1.424 trillion, comprising statutory revenue of N386.124 billion, Value-Added Tax (VAT) of N604.872 billion, EMTL collections of N31.211 billion, and Exchange Difference revenue of N402.714 billion.
In November 2024, N1.727 trillion was shared among the federal, state, and local governments as FAAC revenue, comprising statutory revenue of N455.354 billion.
Fintechs began EMTL deduction in December
Fintechs like OPay, PalmPay, and Moniepoint, among others, started deducting the EMTL from their customers’ transactions of N10,000 and above on December 1, 2024.
Before the December implementation, fintechs announced on September 7, that they would begin deducting N50 as EMTL on users’ transactions of N10,000 and above.
They said the EMTL charge would take effect from September 9, adding that the levy is entirely directed to the Federal Government and not a revenue source.
However, the announcement was met with objections from Nigerians, including the National Association of Nigerian Students (NANS), Point of Sale (PoS) operators, and economists, who argued that the policy was ill-timed.
Following the opposition, the implementation of the levy was suspended for a few months.
However, on November 30, fintechs sent messages to their customers that the implementation of the levy will take effect from December 1, 2024, in line with the directive of the Federal Inland Revenue Service (FIRS).
Consequently, fintechs began deducting N50 as EMTL on transactions of N10,000 and above, bringing to an end the era of free transactions on the platforms.
What is EMTL?
The transfer levy was part of the 2020 amendments made under Section 89A(3) of the Stamp Duties Act Cap. S8 Laws of the Federation of Nigeria, 2004 (SDA) and introduced by the Finance Act of 2021.
The EMTL applies to all electronic transfers of funds in a Nigerian-licensed bank or financial institution, except for transfers under N10,000, money paid into one’s own account, and money transferred electronically between accounts of the same owner within the same bank.
It aims to bolster government revenue given that electronic payment transactions increased by 55 per cent in 2023 to N600 trillion from N387 trillion in 2022, setting an all-time high since the introduction and adoption of electronic payment in the country, according to the Nigeria Inter-Bank Settlement System (NIBSS).
The EMTL regulations guide imposition, administration, collection, and remittance of the levy, with a key provision including a one-time levy of N50 on the recipient of any electronic receipts or transfers of N10,000 or more.
FG realised N133.89 billion as EMTL in 8 months
Meanwhile, TheRadar earlier reported that between January and August 2024, the Federal Government collected N133.89 billion as Electronic Money Transfer Levy (EMTL) from Nigerians.
An analysis of the 2025-2027 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) shows that the amount realised within the period represents 76 per cent of the N175.11 billion government’s projected revenue from EMTL in 2024, as contained in the 2024 budget.
