Fintech Transactions Propel Nigeria’s Government EMTL Revenue to A Record N31.2 Billion in December 2024
The expansion of the Electronic Money Transfer Levy (EMTL) to transactions on fintech platforms has yielded significant results for the Nigerian government.
In December 2024, revenue from this source surged to a record high of N31.2 billion, marking a substantial 107% increase compared to the N15.046 billion collected in November.
This substantial revenue boost was evident in the December revenue-sharing data released by the Federation Account Allocation Committee (FAAC). The three tiers of government – Federal, State, and Local – collectively shared a total of N1.424 trillion, comprising statutory revenue, Value Added Tax (VAT), and the newly expanded EMTL collections.
The implementation of the EMTL on fintech platforms, including prominent players like PalmPay, OPay, and Moniepoint, commenced on December 1, 2024. This involved a N50 charge on transfers received from N10,000 and above, marking the end of an era of free transactions for many users on these platforms.
While fintechs do not directly benefit from this charge, with all proceeds directed to the Federal Government, the move underscores the government’s efforts to bolster its revenue streams.
Key Points on EMTL:
* What it is: A one-time charge of N50 on electronic money transfers or receipts within Nigeria.
* Exemptions:
* Transfers under N10,000
* Money paid into one’s own account
* Transfers between accounts of the same owner within the same bank
* Revenue Sharing:
* Federal Government: 15%
* State Governments: 50%
* Local Governments: 35%
The introduction of the EMTL in the Finance Act 2020 aimed to promote the growth of electronic funds transfers while generating additional revenue for the government. The December figures demonstrate the effectiveness of this policy in achieving its objectives.
Source: Nairametrics
