FG’s Electronic Money Transfer Levy Revenue Hits N360 Billion Total, Doubles Collection Rate After Extension of N50 Charge to Fintech Giants

The Federal Government’s policy of expanding the tax net to capture Nigeria’s booming digital economy has yielded a massive financial dividend, with total revenue generated from the Electronic Money Transfer Levy (EMTL) reportedly doubling to a cumulative figure of N360 billion. This significant revenue haul has been achieved since the levy’s implementation in early 2021.

The EMTL, a single, one-off charge of N50 applied to the recipient of any electronic transfer or deposit of N10,000 and above, has been a key component of the government’s strategy to diversify its income base away from volatile oil receipts. The exponential leap in collection is primarily attributed to the crucial regulatory move in late 2024, which mandated major Fintech platforms including OPay, Moniepoint, and PalmPay to comply with the levy.

By successfully extending the tax to non-bank financial institutions, the government tapped into the massive volume of transactions processed by these platforms, which collectively handle trillions of Naira annually. This expansion effectively broadened the tax base to capture the vast majority of digital payments, confirming the government’s earlier assertion that the fintech sector represented a significant, under-taxed revenue source. The revenue generated from the EMTL is critical for supporting the budgets of all three tiers of government, as the funds are distributed according to a formula: 15% to the Federal Government, 50% to State Governments, and 35% to Local Governments. This performance underscores the direct impact of the cashless policy boom on federal finances.