N103.7b Cash Transfer Taxation
The Federal Government of Nigeria generated N103.7bn in revenue from Electronic Money Transfer Levies (EMTL) in the first half of 2024, marking a 7.55% increase compared to N96.44bn in the same period of 2023.
Data from the Central Bank of Nigeria revealed this growth, driven by the rising adoption of digital payment platforms as more Nigerians and businesses embrace digital banking.
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EKO HOT BLOG reports that the EMTL, introduced through the Finance Act 2020, imposes a one-time N50 charge on electronic transfers of N10,000 or more.
In January 2024, EMTL revenue dropped to N18.60bn, a 26.57% decrease compared to January 2023, but February saw a 20.21% increase, reaching N16.59bn. March followed with N18.60bn, up 53.41% from March 2023. Revenues in April and May showed continued growth, with May recording N18.78bn, 24.24% higher year-on-year.
Though June’s revenue dipped slightly to N15.78bn, it was still a 5.40% increase from June 2023.
How Nigerian Govt Generated N103.7b From Cash Transfer Levies
The surge in digital transactions, reported by the Nigeria Inter-Bank Settlement System (NIBSS), shows e-payment transactions jumped by 86.44% to N566.39tn in the first half of 2024 compared to N303.60tn in 2023.
This increase is attributed to the widespread adoption of electronic payments via platforms like internet banking, mobile apps, and USSD, providing convenience and efficiency for users.
However, Africa’s mobile money sector faces rising fraud risks, with the Global System for Mobile Communications Association reporting fraud exceeding $1bn, a growing concern for the future of digital payments.
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