In December 2024, the Federal Government of Nigeria saw a surge in revenue, with the Electronic Money Transfer Levy (EMTL) contributing N31.2 billion, its highest monthly figure yet.
This is a 107% increase from the N15 billion collected in November of the same year, reiterating the impact of the levy following its expansion to fintech platforms.
The levy, which has been in place since 2020, applies to all electronic transfers above N10,000, excluding transfers between personal accounts within the same bank. While initially applied to transactions within banks, the charge was extended to fintech platforms like OPay, PalmPay, and Moniepoint starting December 1, 2024. As a result, customers who previously enjoyed fee-free transfers are now charged N50 on eligible transactions.
With the decision to include fintech platforms in the EMTL collection, the government aims to increase non-oil revenue, and the December 2024 figures show that the initiative is paying off.
Despite the levy’s extension, fintech companies like OPay have clarified that they do not benefit from the charge, as it is entirely directed to the Federal Government.
For the same period, a total of N1.424 trillion was distributed among Nigeria’s three tiers of government—Federal, State, and Local Governments—based on various revenue sources.
This figure includes N386.1 billion from statutory revenue, N604.9 billion from Value Added Tax (VAT), N402.7 billion from exchange differences, and the aforementioned N31.2 billion from EMTL. While statutory revenue saw a decrease of over N600 billion from the previous month, VAT revenue increased by N20.6 billion.
The allocation from the EMTL revenue was shared among the levels of government with the Federal Government receiving N4.7 billion, States receiving N15.6 billion, and Local Governments receiving N10.9 billion. Again, 13% of the mineral revenue, totalling N113.5 billion, was shared among the states involved in oil production.
The breakdown of the overall distributable revenue for December 2024 shows that the Federal Government received N451.2 billion, while States and Local Governments were allocated N498.5 billion and N361.8 billion, respectively.
However, the overall collection for the month also had deductions for various costs, including collection expenses and refunds.
The government is focusing on diversifying its revenue streams, particularly through digital channels though there have been issues about the impact on consumers, particularly those accustomed to free transactions. The government seeks fiscal sustainability and increased revenue from non-oil sectors.
