August 31, (THEWILL) — The Electronic Money Transfer Levy (EMTL) funds climbed to an all-time high of N37.60 billion in July 2025, constituting a 181.2 percent increase, compared with N13.37 billion recorded in July 2024, and a 28.9 percent rise from N29.16 billion garnered in the preceding month. These mean additional N24.23 billion and N8.44 billion, respectively as of July 2025.
Data by FAAC shows that a total of N187.16 billion was recorded in the seven months of 2025 as EMTL proceeds, against N112.97 generated in the equivalent period of 2024, representing an increase of N74.19 billion or 65.6 percent increase.
The EMTL is levied on transactions conducted via platforms such as mobile money, internet banking and other electronic payment methods – a windfall for the government from improved digital financial transactions with the banks and other financial services institutions.
The levy applies to all electronic transfers of funds placed in a Nigerian-licensed bank or financial institution. It applies to a singular and one-off charge of N50 on electronic transfers or electronic receipts of money in the sum of N10,000 or more. Transfers under N10,000 and between accounts within the same financial institution are outside of the scope of EMTL.
However, the Federal Government in August 2024 expanded the scope of the EMTL to include fintech companies. This move aims to capture revenue from the booming fintech sector, which has seen significant growth in transaction values. Previously, the EMTL primarily targeted traditional banking institutions.
The inclusion of fintechs, which have seen a remarkable increase in transaction values since 2020 is is part of the government’s strategy to regulate and monetise this growing sector. It has added huge revenue to the government coffers at the expense of customers of financial services institutions who enthusiastically embrace the cashless policy of the monetary authorities towards expanding financial inclusion.
Bank and other financial institutions’ customers have been groaning under the burden of multiple taxes and levies imposed by the government through many avenues that impact on the income level of the people. The introduction of the EMTL is considered paradoxical against the clamour for Nigerians to embrace cashless policy via digital and electronic transactions.
The process of collecting and remitting the EMTL funds involves financial institutions collecting the proceeds on each qualifying electronic transfer and remission is expected to be made to the Federal Inland Revenue Service (FIRS) within the timeframe stipulated.
The Finance Act, 2022 which gave birth to the levy stipulates that revenue accruing by the operation of EMTL shall be distributed to the three tiers of government on the basis of derivation with the federal government receiving 15 percent, states 50 percent and the local governments 35 percent of the EMTL fund realised.
The expansion in EMTL revenue underscores the contribution of the banks and the telecom firms as enablers of the scheme. The strategic systems upgrade by the banks which gained increased momentum in 2024 has positioned the financial services institutions for an intense competition that would emerge in the post-capitalisation period after March 2026.
A major factor in the banks’ transformation push is the role of technology. The deposit money banks have engaged in aggressive system upgrade to survive the stiff competition from the recapitlisation exercise. This is yielding fruits as the banks are recording significant increase in digital banking revenue as they expand their systems and engage in aggressive marketing.
The swell in EMTL funds also contributes to the remarkable increase in the FAAC proceeds shared by the three tiers of government and the derivation funds allocated to oil-producing states.
Nigeria’s nine oil-producing states amassed a total of N781.83 billion as statutory13 percent derivative fund from the Federation Account Allocation Committee (FAAC) in the first six months (H1) of 2025, according to data by the National Bureau of Statistics (NBS). The figure constitutes a 128.83 percent increase on the N440.17 billion difference between the two periods.
The 13 per cent derivation fund is a constitutional provision ensuring that states producing crude oil receive additional allocations from the Federation Account. The principle is meant to address the effects of oil extraction, foster local development, and reduce infrastructural deficits in these regions.
Details of the NBS reports showed that Delta stands out among the nine states with the largest share of derivative fund. It received N228.62 billion in H1 2025 against N113.78 billion in the previous year showing a difference of N114.84 billion or 101 percent increase.
Akwa Ibom which received N70.01 billion in H1 2024 amassed N155.68 billion this year – a surge of N85.67 billion or 122.3 percent increase.
Bayelsa pooled N165.90 billion in H1 2025 against N64.04 billion in the corresponding period last year showing an increase of N101.86 billion, representing a rise of 159 percent.
Rivers experienced the same growth trajectory with N89.9 billion increase in H1 2025 constituting a 153 percent over N58.78 billion recorded in H1 2024 against N148.68 billion in the review period.
Edo, which was allotted N11.90 billion in H1 2024 recorded a significant surge of N23.44 billion in the first six months of 2025 translating to an increase of N11.54 billion or 96.97 percent rise.
Ondo received N19.72 billion in H1 2025 compared to N10.05 billion in the preceding year – showing a positive difference of N9.67 billion or 96.2 percent increase.
The single-digit recipients in H1 2024: Imo, Abia and Anambra, experienced a significant upsurge in the review period.
Imo recorded an increase of N12.1 billion to hit N17.82 billion in H1 2025 against the relatively paltry N5.72 billion received in the previous year – an increase of 211.53 percent.
Abia which received the least in H1 2024 – N3.19 billion, experienced a surge of N7.88 billion in H1 2025 to hit N11.07 billion, constituting a jump of 247 percent.
Anambra earned an increase of N6.8 billion in H1 2025 over N4.13 billion it received in H1 2024 showing a 164.6 percent rise over the previous year’s corresponding period.
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.
