The expansion of the Electronic Money Transfer Levy (EMTL) to encompass transactions processed via fintech platforms yielded N31.2 billion in revenue for the Federal Government during December 2024, representing the highest monthly revenue generated from this source to date.

As per the revenue-sharing data published by the Federation Account Allocation Committee (FAAC) for December, this figure indicates a remarkable 107% increase in EMTL revenue compared to the N15.046 billion reported in November.

In December 2024, the total revenue shared among the three tiers of government—Federal, State, and Local—amounted to N1.424 trillion, derived from collected statutory revenue, Value Added Tax (VAT), and EMTL for the month.

Fintech companies such as PalmPay, OPay, and Moniepoint began implementing the EMTL deductions from their customers' transactions starting December 1, 2024.

These deductions are applicable to transfers of N10,000 and above. While some customers had previously enjoyed completely free transactions on these platforms, the introduction of the EMTL has brought that period to a close.

“It is important to note that OPay does not benefit from this charge in any way as it is directed entirely to the Federal Government,”  as stated in a notice to its customers regarding the deduction.

The inclusion of the Electronic Money Transfer Levy (EMTL) for fintech companies is undoubtedly part of the government's strategy to enhance its revenue, which appears to be effective, as evidenced by the growth in EMTL revenue reported in December.

The EMTL is a one-time fee of N50 applied to electronic money transfers or receipts in Nigeria. This charge is applicable to all electronic fund transfers conducted through Nigerian-licensed banks or financial institutions, with certain exceptions:

  • Transfers below N10,000
  • Funds deposited into one's own account
  • Electronic transfers between accounts owned by the same individual within the same bank.

Introduced in the Finance Act of 2020, the EMTL aims to promote the expansion of electronic funds transfers in Nigeria. The revenue generated from the EMTL is distributed among the three levels of government.

The distribution of EMTL revenue is based on derivation, with the Federal Government receiving 15%, state governments 50%, and local governments 35%.

In December 2023, the Federal Inland Revenue Service (FIRS) instructed deposit banks to deduct and remit the EMTL on foreign currency (FCY) transactions moving forward. Prior to this, the N50 charge on transactions exceeding N10,000 was only applicable to local currency transactions. In January of the previous year, banks began deducting the EMTL on historical foreign currency transactions from 2021 to 2023, as mandated by the tax authority.