In December 2024, Nigeria’s Electronic Money Transfer Levy (EMTL) revenue surged to an unprecedented N31.2 billion, marking the highest monthly collection since the levy’s inception. This significant increase is primarily attributed to the expansion of the EMTL to encompass transactions conducted through fintech platforms.
Expansion of EMTL to Fintech Platforms
Initially, the EMTL—a N50 charge on electronic transfers exceeding N10,000—was applied exclusively to transactions within traditional banking institutions. However, in September 2024, the Federal Government extended this levy to include fintech operators, such as Opay and Moniepoint, to ensure a more comprehensive taxation framework across all financial transactions.
Impact on Government Revenue
The inclusion of fintech transactions has substantially bolstered government revenue. In December 2024, the Federal, State, and Local governments collectively shared N1.424 trillion, derived from various sources:
- Statutory Revenue: N386.124 billion
- Value Added Tax (VAT): N604.872 billion
- Electronic Money Transfer Levy (EMTL): N31.211 billion
- Exchange Differences: N402.714 billion
The N31.2 billion generated from the EMTL in December 2024 represents a 107% increase compared to previous months, underscoring the significant impact of incorporating fintech transactions into the levy’s scope.
Distribution of EMTL Proceeds
Revenues collected from the EMTL are distributed among the three tiers of government as follows:
- Federal Government: 15%
- State Governments: 50%
- Local Governments: 35%
This allocation framework ensures that the benefits of the levy are equitably shared, supporting various developmental projects across the nation.
Projected Revenue and Economic Implications
The Federal Government has set ambitious revenue targets for the EMTL in the coming years, projecting N230 billion for 2025, N265 billion for 2026, and N305 billion for 2027, totaling an estimated N800 billion over the three-year period.
The successful integration of fintech platforms into the EMTL framework not only enhances government revenue but also signifies a maturing digital financial ecosystem in Nigeria. As fintech adoption continues to rise, the EMTL is poised to remain a vital component of the nation’s fiscal strategy, contributing to economic stability and growth.
Conclusion
The expansion of the Electronic Money Transfer Levy to include fintech transactions has proven to be a strategic move for Nigeria, resulting in record-breaking revenue collections. This development highlights the critical role of fintech in the country’s financial landscape and underscores the importance of adaptive fiscal policies in harnessing the full potential of digital financial services.
