In a significant boost to Nigeria’s non-oil revenue, the Federal Government generated N84.05 billion from the Electronic Money Transfer Levy (EMTL) in the first quarter of 2025.
This represents a remarkable 76% increase from the previous year, signaling a growing reliance on digital payment platforms.
According to a recent report from the Federal Inland Revenue Service, the EMTL collections reached N84.05 billion in the first quarter of 2025, up from N47.74 billion during the same period in 2024. This surge in revenue reflects stronger enforcement of the levy and the growing adoption of digital payment systems across Nigeria.
The breakdown of the collections reveals that January 2025 saw N21.40 billion, marking a 29.1% increase compared to January 2024.
February’s revenue stood out with a record N36.64 billion, more than doubling from the N15.79 billion collected in February 2024 — a massive 132% year-on-year growth. March saw a dip to N26.01 billion, though it still showed a 69.2% rise compared to March 2024.
The EMTL was introduced under the Finance Act 2020, imposing a N50 levy on all electronic transactions above N10,000. The funds collected are shared among the three tiers of government based on a specified revenue-sharing formula.
In Q1 2025, a total of N80.69 billion was disbursed to the Federal, state, and local governments, marking a 73.7% increase compared to the first quarter of 2024.
While February’s collection reached a high of N36.64 billion, March’s decline by 29% compared to February was still a notable performance, especially considering the huge gains made over the year.
The Federal Government received a total of N12.10 billion from the EMTL in Q1 2025, which is a 76% increase from the N6.88 billion allocated in the same period of 2024.
The states also saw an impressive increase in their allocations, with state governments receiving N37.26 billion, up by 62.6%. Local governments experienced the highest growth, with their share rising by 88% to N31.33 billion.
The Electronic Money Transfer Levy is playing an essential role in Nigeria’s fiscal policy, but as the country pushes for even more non-oil revenues, it’s crucial for citizens to ensure compliance with digital payment regulations.
Share your thoughts on how this levy can be further optimized.
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