The Federal Government’s decision to extend the Electronic Money Transfer Levy (EMTL) to fintech platforms like OPay, PalmPay, and Moniepoint has paid off handsomely, with revenue from the levy hitting an all-time high of N31.2 billion in December 2024. This marks a staggering 107% increase compared to the N15.046 billion collected in November 2024.
According to data released by the Federation Account Allocation Committee (FAAC), the EMTL contributed significantly to the total revenue of N1.424 trillion shared among the Federal, State, and Local Governments for December. The levy, which applies to electronic transfers of N10,000 and above, was introduced as part of the Finance Act 2020 but was recently extended to cover fintech transactions starting December 1, 2024.
The EMTL is a N50 charge applied to electronic money transfers or receipts in Nigeria. However, there are some exemptions:
Transfers below N10,000
Transfers between accounts owned by the same person within the same bank
Deposits made into one’s own account
The revenue generated from this levy is shared among the three tiers of government: the Federal Government receives 15%, States get 50%, and Local Governments take 35%.
Before December 2024, many Nigerians enjoyed free or low-cost transactions on fintech platforms. However, with the inclusion of fintechs in the EMTL framework, customers now pay the N50 levy on qualifying transactions. Platforms like OPay have clarified that they do not benefit from this charge; it is remitted entirely to the Federal Government.
This move aligns with the government’s broader strategy to increase its revenue base amid economic challenges. The sharp rise in EMTL revenue in December suggests that extending the levy to fintech platforms was a highly effective decision.
What This Means for Nigerians
While this development has boosted government coffers, it has also ended the era of fully free transactions on most fintech platforms. Customers are now feeling the pinch of additional charges on their transactions, especially as inflation remains high at 34.8% as of December 2024.
The success of this initiative signals that fintechs will continue playing a pivotal role in Nigeria’s financial ecosystem and revenue generation efforts. With projections for EMTL revenue set at N230 billion for 2025, it’s clear that electronic transactions will remain a critical focus area for government taxation policies.
For now, Nigerians can expect these deductions to remain a part of their digital banking experience as the government seeks sustainable ways to fund its operations and development projects
