The Federal Government generated N103.7 billion in revenue from the Electronic Money Transfer Levy (EMTL) during the first half of 2024, according to data from the Central Bank of Nigeria’s statistical bulletin. This marks a 7.55% increase from the N96.44 billion collected in the same period in 2023.
The increase reflects the growing adoption of digital payment platforms and a rise in electronic transactions, as more Nigerians and businesses turn to digital banking solutions. The EMTL was introduced through the Finance Act 2020, which amended the Stamp Duty Act to capitalize on the expanding use of electronic funds transfers in Nigeria.
The Federal Government Earned N103.7 billion From Digital Cash Transfers Within Six Months
The levy imposes a one-time charge of N50 on electronic transfers or receipts of N10,000 or more into any type of account at deposit money banks or financial institutions.
In January 2024, EMTL revenue stood at N18.60 billion, a 26.57% decline from the N25.33 billion collected in January 2023. However, in February, revenue grew by 20.21% to N16.59 billion, up from N13.80 billion in February 2023.
March saw a significant increase, with revenue rising by 53.41% to N18.60 billion, compared to N12.13 billion in the same month the previous year. In April, revenue was N15.37 billion, reflecting a marginal 1.85% growth from the N15.09 billion collected in April 2023.
In May 2024, revenue from the Electronic Money Transfer Levy (EMTL) experienced a notable year-on-year increase, reaching N18.78 billion, 24.24% higher than the N15.12 billion collected in May 2023. Although EMTL revenue dipped slightly in June to N15.78 billion compared to May, it still marked a 5.40% rise from the N14.97 billion collected in June 2023.
According to The PUNCH, e-payment transactions in Nigeria surged by 86.44% in the first half of 2024, reaching N566.39 trillion, up from N303.60 trillion in the same period in 2023, based on data from the Nigeria Inter-Bank Settlement System (NIBSS).
The NIBSS Instant Payment (NIP) platform, launched in 2011, allows real-time, online interbank payments and has been made accessible to customers through internet banking, mobile apps, USSD codes, ATMs, POS systems, and bank branches. The sharp rise in e-payment transactions is attributed to the growing adoption of digital payment platforms by both businesses and individuals, driven by the convenience and efficiency they offer.
In 2023, electronic payment transactions in Nigeria reached an all-time high of N600 trillion, a 55% increase from N387 trillion in 2022.
However, as telecom operators in Africa expand their investments in mobile money services, they face significant challenges due to a surge in fraud. The Global System for Mobile Communications Association’s “State of the Industry Report on Mobile Money 2023” revealed that mobile money fraud in Africa exceeded $1 billion, raising concerns that these security issues could hinder the growth and adoption of mobile money services.
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