Between January and August this year, Nigerian bank customers paid a total of ₦133.89 billion as Electronic Money Transfer Levy (EMTL) to the federal government.
This data is outlined in the 2025-2027 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP), which provides insight into the government’s revenue streams during the period.
The EMTL, a ₦50 charge deducted by banks on every transaction amounting to ₦10,000 or more, accounted for 76% of the ₦175.11 billion revenue target set for 2024 under this source in the year’s budget.
EMTL Expansion Expected to Boost Revenue in 2025
Looking ahead, the government has projected higher revenue from EMTL in 2025, targeting ₦228.85 billion, a 31% increase from the 2024 projection. This anticipated growth follows the extension of EMTL deductions to transactions conducted on fintech platforms.
In September, fintech operators, including OPay, Moniepoint, and PalmPay, informed their users of the impending implementation of the EMTL on all inflows of ₦10,000 and above, as mandated by the Federal Inland Revenue Service (FIRS). Initially slated for September 9, the deductions eventually commenced on December 1, 2024, marking the end of zero-charge banking services offered by some fintechs. These deductions are remitted directly to the federal government.
Key Facts About EMTL
The EMTL is a ₦50 one-time fee applied to electronic fund transfers or receipts made through Nigerian banks or financial institutions, with certain exemptions:
- Transfers below ₦10,000
- Transactions within one’s own account
- Transfers between accounts owned by the same individual in the same bank
Introduced via the Finance Act of 2020, the levy aims to support the growth of electronic transactions in Nigeria. Revenue collected from the EMTL is distributed among the federal, state, and local governments, with 15% allocated to the federal government, 50% to state governments, and 35% to local governments.
Foreign Currency Transactions Now Subject to EMTL
In December 2023, the FIRS directed banks to extend EMTL deductions to foreign currency transactions. Previously, the ₦50 charge was only applied to local currency transactions. Consequently, banks began implementing EMTL on past foreign currency transactions from 2021 to 2023 in January this year, following the tax authority’s directive.
This adjustment underscores the government’s efforts to broaden its revenue base while ensuring compliance across financial platforms.
