Anastasia John E.
The Federal Government’s revenue from the Electronic Money Transfer Levy (EMTL) soared to an unprecedented N31.2 billion in December 2024, marking its highest monthly collection to date. This surge follows the incorporation of fintech platform transactions into the EMTL framework.
According to the latest data from the Federation Account Allocation Committee (FAAC), December’s EMTL revenue reflects a 107% increase from the N15.046 billion reported in November. The total revenue shared among the Federal, State, and Local governments for December 2024, which includes statutory revenue, Value Added Tax (VAT), and EMTL, amounted to N1.424 trillion.
Fintech companies such as PalmPay, OPay, and Moniepoint began EMTL deductions from transactions on December 1, 2024. This levy applies to transfers of N10,000 and above, marking a shift from the previously free transaction landscape offered by some platforms. OPay clarified to its users that the EMTL charges are remitted entirely to the Federal Government, without any profit retained by the company.
The expansion of EMTL to include fintech platforms is part of the government’s strategy to enhance its revenue streams, as evidenced by the significant growth in December’s figures.
Understanding EMTL
The Electronic Money Transfer Levy (EMTL) is a N50 charge applied to electronic money transfers or receipts within Nigerian banks or financial institutions, with specific exceptions:
- Transfers below N10,000
- Money deposited into one’s own account
- Transfers between accounts owned by the same person within the same bank
Introduced in the Finance Act 2020, the EMTL aims to promote electronic funds transfers in Nigeria, with its revenues distributed among the three tiers of government: 15% to the Federal Government, 50% to state governments, and 35% to local governments.
In December 2023, the Federal Inland Revenue Service (FIRS) mandated the deduction and remittance of EMTL on foreign currency transactions by banks, extending the levy beyond local currency transactions. This directive included deductions on past foreign currency transactions from 2021 to 2023, further bolstering government revenue.
