FG’s electronic transfer levy revenue doubles to N360bn

The Federal Government received N360.29bn from electronic money transfer levies between January and October 2025, based on a Federal Inland Revenue Service document seen by The PUNCH on Friday.

The amount was more than double the N170.92bn generated in the same period of 2024, showing an increase of N189.36bn (110.8 per cent). The monthly figures showed that receipts were higher in every month of 2025 than in the corresponding month of 2024.

The percentage increases were significant across the entire period, pointing to a sustained rise in taxable transfer volumes. January 2025 recorded N21.40bn compared with N16.59bn in January 2024, a difference of N4.82bn (29 per cent).

February showed a much stronger movement. Collections more than doubled, rising from N15.79bn in 2024 to N36.64bn in 2025. March brought in N26.01bn against N15.37bn a year earlier. The increase of N10.64bn represented about 69.2 per cent growth.

In April, revenue climbed from N18.77bn in 2024 to N40.48bn in 2025. That N21.71bn rise translated to approximately 115.6 per cent. April was one of the first months where the increase more than doubled the previous year.

May continued the pattern. The N28.82bn collected in May 2025 exceeded the N15.78bn recorded in May 2024 by N13.04bn, representing an increase of about 82.7 per cent. In June, receipts rose from N16.35bn last year to N30.38bn this year. The N14.03bn difference was an 85.9 per cent increase.

The July figures almost doubled year-on-year. The N39.17bn collected in July 2025 compared with N19.60bn in July 2024. August followed the same direction. It rose from N15.64bn in 2024 to N33.68bn in 2025, a difference of N18.04bn, equal to a 115.3 per cent increase.

September recorded the single strongest jump. The revenue grew from N19.21bn last year to N53.84bn in 2025. The N34.63bn increase represented a rise of 180.2 per cent. October also stayed near that peak. It generated N49.87bn in 2025 compared with N17.82bn in 2024.

Although October was slightly lower than September, it remained one of the highest-earning months in the period. Proceeds from the levy are shared among the three tiers of government based on an approved revenue-sharing formula, providing a supplementary revenue source that has grown in importance amid Nigeria’s push for increased non-oil revenues.

Usually, the proceeds are shared among the three tiers of government, with 15 per cent to the Federal Government and 85 per cent to states and local governments.

In December 2024, The PUNCH reported that operators of Point-of-Sale terminals raised their charges in line with the implementation of the Electronic Money Transfer Levy of N50 by the Federal Inland Revenue Service, charged on any electronic inflow of N10,000 and above.

Several fintech platforms notified their customers that they would start the collection of N50 as an Electronic Money Transfer Levy in compliance with the Federal Government Stamp Duty Act, which would be remitted to the Federal Inland Revenue Service.

Moniepoint in a mail said, “Please be informed that in compliance with the Federal Government Stamp Duty Act, you would be charged an Electronic Money Transfer Levy of N50 by the Federal Inland Revenue Services on any electronic inflow of N10,000 and above”, adding that “FIRS charges you N50 for inflow received in your Moniepoint personal banking account. Moniepoint does not benefit from this but receives and remits this sum to FIRS.”

It clarified that the levy applies to all electronic inflows of N10,000 or more except when the electronic inflow is between Moniepoint accounts owned by the same user.

OPay sent a terse message to its customers on the app saying, “Dear customer, in line with the FIRS, the EMTL applies starting December 1st, 2024.”

The Electronic Money Transfer Levy was first introduced through the Finance Act 2020, which expanded the scope of dutiable instruments under the Stamp Duties Act to include electronic transactions.

The regulations guide the imposition, administration, collection, and remittance of the Electronic Money Transfer Levy, which was introduced by the Finance Act, 2020. Key provisions include A one-time levy of N50 on the recipient of any electronic receipts or transfers of N10,000 or more.

The initial implementation of the levy on fintech transactions in September 2024 elicited reactions from Nigerians, especially on social media, who accused the government of continuously imposing taxes on citizens without notable progress or accountability for how the monies are spent. It was suspended, and implementation was moved to December 1, 2024.

With the full implementation of the levy on both bank transfers and fintech transactions, earnings from EMTL have doubled in 2025. Economists earlier warned that the move would ground the fintech space.

Former Chief Economist at Zenith Bank, Marcel Okeke, earlier told The PUNCH that the move was ill-timed and could have far-reaching negative consequences for the economy, particularly in the fintech sector, which has been growing rapidly in recent years.

Okeke argued, “The Federal Government’s move to impose a N50 levy on fintech transactions is driven by a desire to boost revenue. However, this approach may have unforeseen consequences. By targeting digital transactions, the government may inadvertently discourage people from using these services, leading to a demonetisation of the economy,” Okeke said.