Government Rakes in N78.95bn from Electronic Bank Transfer Levy in Five Months

The Nigerian government generated N78.95 billion from the N50 levy imposed on electronic bank transfers in the first five months of 2024.

This revenue collection revealed the importance of the Electronic Money Transfer Levy (EMTL) introduced under the Finance Act 2020.

The EMTL, established to tap into the burgeoning sector of electronic funds transfers, applies a singular and one-off charge of N50 on electronic receipts or transfers of funds amounting to N10,000 and above.

This levy is imposed on any deposit money bank or financial institution account.

The National Bureau of Statistics, in its Federal Allocation Accounts Committee report, disclosed that the 36 state governments received a combined allocation of N31.84 billion from January to April 2024.

This distribution forms part of the government’s broader revenue-sharing framework, which allocates 50% of EMTL proceeds to state governments, 35% to local governments, and 15% to the Federal Government.

The monthly breakdown of revenue collected from the EMTL revealed consistent inflows: N15.9 billion in January, N15.15 billion in February, N14.75 billion in March, N18 billion in April, and N15.14 billion in May.

The states benefited significantly from this revenue stream. From January to April, the federal allocation indicated that N8.93 billion was shared in January, N7.96 billion in February, N7.58 billion in March, and N7.38 billion in April.

Among the states, Anambra received the highest allocation with N1.03 billion, followed by Bauchi with N818.98 million, and Akwa-Ibom with N796.81 million.

The 2023–2025 Medium Term Expenditure Framework and Fiscal Strategy Paper had projected government earnings from EMTL at N137.03 billion in 2023, N157.59 billion in 2024, and N189.11 billion in 2025.

This year’s collections suggest the government is on track to meet, if not exceed, its 2024 projection.

In addition to direct government revenue, digital banking channels have shown robust growth, generating approximately N438 billion for 10 financial institutions in 2023. This represents a 37.54% increase from N318.64 billion in the previous year.

E-business income, encompassing revenue from electronic channels, card products, and related services, has continued to rise, driven by stable platforms and increased consumer adoption.

Lilian Phido, Head of Corporate Communications at the Nigeria Inter-Bank Settlement System (NIBSS), highlighted the growing acceptance and reliability of electronic payment channels.

“With stability, these components have grown. More and more people are moving towards these platforms,” she commented in an earlier interview on Sunday.

The consistent revenue from the EMTL not only reflects the success of the Finance Act 2020 in capturing the economic potential of digital transactions but also underscores the crucial role of electronic banking in the country’s financial ecosystem.