March 03, (THEWILL) – The Nigerian government raked in N20.54 billion in January 2025, from Electronic Money Transfer Levy (EMTL) as part of the N1.7 trillion Federation Accounts Allocation Committee proceed shared by the three tiers of government.
A press release issued by Bawa Mokwa, Director (Press and Public Relations) at the Office of the Accountant General of the Federation on Thursday, confirmed that the N1.703 trillion distributable revenue to the federal, state and local governments includes N20.54 billion from the Electronic Money Transfer Levy (EMTL).
The EMTL is levied on transactions conducted via platforms such as mobile money, internet banking, and other electronic payment methods. The Finance Act, 2020 which gave birth to it, further specified the particular rates and circumstances of the Levy, which ensured transparency and consistency in its application.
It applies to all electronic transfers of funds placed in a Nigerian-licensed bank or financial institution. The Levy is imposed as a singular and one-off charge of ₦50 on electronic transfers or electronic receipts of money in the sum of ₦10,000 or more. Transfers under ₦10,000 and between accounts within the same financial institution are outside of the scope of EMTL
The January figure (N20.54 billion), though less than the N31.211 billion garnered in the previous month – December 2024, reflects a huge sum since the EMTL took off in August 2022 as tracked by THEWILL.
Except for October 2023 when EMTL reached N20 billion, last January’s figure of N20.54 billion followed N31.21 billion earned in December 2024, during the festive period.
Fintech firms such as MoniePoint, Opay and Palmpay pushed their digital platforms aggressively into the hinterland to take advantage of the cash-strapped environment which led to the emergence POS operators at an unusually high rate.
The Nigeria Inter-Bank Settlement System (NBSS) recently reported that electronic payment transactions in Nigeria rose to an all-time high of N1.07 quadrillion in 2024 – a point never witnessed in the nation’s financial services history. A quadrillion is an equivalent of N1,000 trillions – about $702.6 billion based on the closing exchange rate of N1,535/$1 on December 31, 2024.
According to the data released by NIBSS, the value recorded on the NIBSS Instant Payment (NIP) represents a 79.6 percent increase over the N600 trillion recorded in the preceding year – 2023.
While the e-payment data shows a steady increase throughout the 12 months of the year, the highest value was recorded in December. THEWILL reports that the countryside witnessed unusually high rate of e-payment transactions during the last festivities following the rapid expansion of fintech firms.
Being a festive period with lots of spending activities, Nigerians spent a total of N115.1 trillion over electronic channels in December 2024 according to the NIBSS data.
The volume of transactions processed by NIBSS for the year also jumped from 9.7 billion in 2023 to 11.2 billion in 2024 representing a 15.5 percent increase in the volume of electronic transactions year on year which fuels the EMTL proceeds.
Fraudsters on the prowl
Despite the strict measures by both the regulators and the operators, the Nigerian banking environment continues to be attacked by fraudsters who are determined to undermine its efficiency and security.
The NIBSS reported last week that approximately N400 million was stolen by fraudsters through financial accounts opened with stolen identities in 2024. This was contained in the latest NIBSS Fraud Report which revealed that identities of senior citizens were stolen, and accounts were opened in their names.
According to the report, the estimated N400 million proceeds from fraud were transferred into these accounts and subsequently dissipated. The report further revealed that the accounts were operated by an individual from Asia whose selfie was used for verification, with locations showing as Hong Kong in at least three financial institutions.
Furthermore, on July 30, 2024, a corporate account for an oil and gas company was opened using doctored documents and a registered company number picked from the internet. Supporting documents were also fabricated to open the accounts.
Investigations revealed that a total of N335 million from fraud proceeds was received on the same day the account was opened. The funds were then transferred to unlicensed Bureau De Change (BDC) operators in July 2024.
NIBSS, in collaboration with law enforcement, managed to recover all the funds, and an account officer was found with incriminating documents by the Economic and Financial Crimes Commission (EFCC).
The NIBSS Fraud Report also highlighted that over one billion naira was moved using two accounts after Bank Verification Numbers (BVNs) were registered for two minors by compromised bank staff.
The revelations come amid a broader pattern of rising fraud cases in Nigeria’s financial sector. While the number of reported fraud incidents dropped by 31 percent between 2020 and 2024, the total financial losses due to fraud skyrocketed by 350 percent within the same period.
According to NIBSS data, the amount lost to fraud surged from N11.61 billion in 2020 to N52.26 billion in 2024, highlighting how fraudsters have become more sophisticated in their operations. Many of these fraudulent activities exploit regulatory loopholes, weak identity verification processes, and corrupt financial service intermediaries.
NIBSS is the central system responsible for the settlement of inter-bank transactions within Nigeria.
The platform connects Deposit Money Banks (DMBs), Mobile Money Operators (MMOs), Switches, and Payment Service Providers (PSPs).
“Tracking these fraudulent practices is a very important milestone in the management of Nigeria’s sophisticated electronic payment landscape which is becoming more complex by the day,” said Julius Akannor, a finance expert.
Akannor in a chat with THEWILL said NIBSS is building a strong digital infrastructure that would drastically reduce the rate of bank fraud in the system, pointing out that NIBSS recently launched the NQR (New Quick Response) payment platform for cost-effective and more secure digital financial transactions.
Being a game-changer, NQR allows customers to scan seller-generated QR codes to make payments directly from their bank accounts via mobile banking apps.
Each QR code contains transaction-specific details, ensuring a seamless payment experience. Under the supervision of the Central Bank of Nigeria (CBN) and NIBSS, this secure and instantaneous platform offers a compelling alternative to cash transactions.
Speaking at the presentation of the initiative in Lagos, NIBSS Managing Director and CEO, Premier Oiwoh, emphasised the urgent need for financial and payment stakeholders to accelerate NQR adoption, given the global shift towards contactless payments powered by technologies such as Near Field Communication (NFC).
“NQR is an innovative product that stands out, and we need to understand, innovate, and leverage it to drive financial inclusion,” Oiwoh stated.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
