In December 2024, the Federal Government of Nigeria reported a significant increase in revenue from the Electronic Money Transfer Levy (EMTL), totaling N31.211 billion. This surge is attributed to the growing volume of fintech transactions across the country.
Revenue Distribution:
- Federal Government: Received N4.682 billion from the EMTL.
- State Governments: Allocated N15.605 billion.
- Local Government Councils: Received N10.924 billion.
The total distributable revenue for December 2024 amounted to N1.424 trillion, comprising:
- Statutory Revenue: N386.124 billion
- Value Added Tax (VAT): N604.872 billion
- EMTL: N31.211 billion
- Exchange Difference: N402.714 billion
This marks a 17.38% increase in EMTL revenue compared to the N181.21 billion collected in 2023, reflecting the expanding adoption of electronic financial transactions in Nigeria.
The EMTL, introduced via the Finance Act of 2020, imposes a N50 levy on electronic receipts or transfers of N10,000 and above. Revenue from this levy is distributed with 15% to the Federal Government and Federal Capital Territory, 50% to state governments, and 35% to local governments.
The significant increase in EMTL collections underscores the critical role of fintech in enhancing government revenue streams and the importance of continued investment in Nigeria’s digital financial infrastructure.
What You Should Know:
- EMTL Revenue Growth: In December 2024, the Federal Government generated N31.2 billion from the Electronic Money Transfer Levy (EMTL), reflecting a significant boost driven by increased fintech transactions.
- Revenue Distribution:
- Federal Government: N4.68 billion (15%)
- State Governments: N15.61 billion (50%)
- Local Governments: N10.92 billion (35%)
- Purpose of EMTL: Introduced in the Finance Act 2020, the EMTL imposes a N50 levy on electronic transactions above N10,000. It aims to enhance government revenue from digital financial activities.
- Impact of Fintech: The rise in EMTL revenue underscores the growing adoption of digital payments in Nigeria, further strengthening the government’s revenue base.
- Broader Revenue Context: The total distributable revenue for December 2024, including statutory revenue, VAT, and exchange differences, amounted to N1.424 trillion.
- Significant Increase: The EMTL revenue for December 2024 marks a 17.38% increase compared to the N181.21 billion collected in 2023, highlighting the rapid growth in electronic financial transactions across Nigeria.
