The Federal Government of Nigeria has generated N103.7bn in revenue from the Electronic Money Transfer Levy in the first half of 2024, marking a 7.55 percent increase compared to the N96.44bn collected during the same period in 2023.
Data from the Central Bank of Nigeria’s statistical bulletin shows the rising use of digital payment platforms as more Nigerians and businesses embrace electronic banking solutions.
The EMTL was introduced in the Finance Act of 2020, amending the Stamp Duty Act to tap into the growth of electronic funds transfer in Nigeria.
The levy is a one-off charge of N50 on electronic receipts or transfers of N10,000 or more.
January 2024 recorded N18.60bn from the levy, a 26.57 percent decrease from N25.33bn in the same period last year.
However, February saw a 20.21 percent increase with N16.59bn collected, compared to N13.80bn in February 2023.
March 2024 saw further growth, with N18.60bn generated, up by 53.41 percent from N12.13bn in March 2023. April posted a marginal increase of 1.85 percent, with N15.37bn collected compared to N15.09bn in April 2023.
May saw a more significant rise, with N18.78bn collected, representing a 24.24 percent increase from N15.12bn in May 2023.
Though June 2024 saw a slight dip from May’s figure, N15.78bn was still collected, reflecting a 5.40 percent increase from N14.97bn in the same period last year.
The growth in EMTL revenue mirrors a significant increase in e-payment transactions in Nigeria.
According to the Nigeria Inter-Bank Settlement System, e-payment transactions surged by 86.44 percent, reaching N566.39tn in the first half of 2024, compared to N303.60tn in the same period last year.
This rise in electronic payments is attributed to the convenience and efficiency offered by platforms such as internet banking, mobile apps, USSD, ATMs, and POS terminals, as banks continue to expand the use of the Nigeria Inter-Bank Settlement System’s (NIP) real-time interbank payment platform.
Despite these positive trends, Africa’s mobile money sector faces a significant challenge with fraud exceeding $1bn, according to the Global System for Mobile Communications Association’s 2023 report.
Security concerns may hinder further adoption of mobile money services across the continent.
