Federal Government Electronic Money Transfer Levy Revenue Hits N360.29 billion in 2025

Federal Government Electronic Money Transfer Levy Revenue Hits N360.29 billion in 2025

The Federal Government generated N360.29 billion from the Electronic Money Transfer Levy (EMTL) between January and October 2025, according to a Federal Inland Revenue Service (FIRS) document obtained by The PUNCH.

This amount is more than twice the N170.92 billion collected during the same period in 2024—an increase of N189.36 billion, representing 110.8% year-on-year growth. Every month in 2025 recorded higher EMTL inflows than its 2024 counterpart, showing a sustained rise in electronic transaction volumes subject to the levy.

Strong Month-by-Month Growth

The monthly data highlights consistent upward movement across the first 10 months of 2025:

• January: N21.40 billion vs. N16.59 billion in 2024 — 29% increase
• February: N36.64 billion vs. N15.79 billion — collections more than doubled
• March: N26.01 billion vs. N15.37 billion — 69.2% rise
• April: N40.48 billion vs. N18.77 billion — 115.6% increase, one of the earliest months to exceed double 2024 figures
• May: N28.82 billion vs. N15.78 billion — 82.7% growth
• June: N30.38 billion vs. N16.35 billion — 85.9% increase
• July: N39.17 billion vs. N19.60 billion — nearly double
• August: N33.68 billion vs. N15.64 billion — 115.3% growth
• September: N53.84 billion vs. N19.21 billion — the largest jump, rising 180.2%
• October: N49.87 billion vs. N17.82 billion — among the highest-earning months

Although October fell slightly below the September peak, it remained one of the strongest revenue-generating months within the period.

How EMTL Revenue Is Shared

As stipulated by Nigeria’s revenue-sharing framework:

• 15% of EMTL proceeds goes to the Federal Government,
• 85% is allocated to state and local governments.

The levy has become increasingly important as Nigeria seeks to expand its non-oil revenue base.

Background: Why EMTL Collections Surged

The spike in EMTL revenue followed the implementation of the N50 levy on electronic transfers and receipts of N10,000 and above, as mandated by the Stamp Duties Act and expanded under the Finance Act 2020.

In late 2024, several fintech platforms—such as Moniepoint and OPay—informed customers that they would begin charging the EMTL in line with federal regulations.

• Moniepoint clarified that the fee applies to every qualifying inflow into users’ personal accounts, excluding transfers between accounts owned by the same user.
• OPay similarly announced full enforcement effective December 1, 2024.

The levy was initially scheduled for implementation in September 2024 but was suspended following strong public criticism before its eventual rollout in December.

Concerns From Economists and Industry Stakeholders

The formal extension of EMTL to fintech transactions sparked widespread debate. Some Nigerians criticised the government for imposing fresh charges without evidence of improved public services.

Economists also warned that the policy could strain the country’s rapidly expanding digital payments ecosystem.

Former Zenith Bank Chief Economist Marcel Okeke argued that while the government aims to boost revenue, taxing digital transactions may discourage usage, potentially slowing financial inclusion and pushing people back toward cash.

According to Okeke, targeting electronic payments could lead to a form of “demonetisation” if users abandon digital channels to avoid additional fees.

Conclusion

With full implementation now in effect for both banks and fintech operators, the Electronic Money Transfer Levy has become one of the fastest-growing non-oil revenue streams for the Federal Government.

The sharp rise in EMTL collections throughout 2025 underscores both the growth of Nigeria’s digital financial ecosystem and the financial impact of regulatory changes that broaden the scope of taxable electronic transactions.

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