November 24, (THEWILL) — The Federal Government raked in N47.87 billion from digital cash switch fee, otherwise called Electronic Money Transfer Levy (EMTL) in November, 2025, a whopping 217.8 percent rise against N15.06 billion garnered in the equivalent period of the previous year.
Data by the Federation Account Allocation Committee (FAAC) shows that the N47.87 billion was a component of the overall N2.094 trillion realised in October and shared by the federal government, the 36 states, and the 774 local government councils in November.
In 2024, the total FAAC was N1.72 trillion (realised in October) but shared by the three tiers of government in November with N15.06 trillion as EMTL.
The surge in FAAC and EMTL stems from the phenomenal revenue increase accruable to the federal government from the removal of petrol subsidy, and, particularly, devaluation of the Naira from N467/US$1 on June 13, 2023 to the current range of N1,450/US$1. There has also been a significant increase from tax revenue since the reforms that were introduced by the government in 2023.
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 the 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 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.
Recently, the federal government disclosed that it has launched an investigation into the collection of the EMT levy between 2019 and 2022, in a move aimed at tightening transparency and boosting revenue accountability.
The inquiry is being coordinated by the Inland Revenue Monitoring Committee (IRMC) of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC).
In a statement issued on Thursday, November 20, 2025, Maryam Umar Yusuf, Head of the Information and Public Relations Unit of RMAFC, announced that the investigation is being spearheaded by Dr. Kolade Daniel Abimbola, the Commissioner representing Oyo State.
As part of the ongoing probe, Abimbola paid a working visit to the headquarters of the Nigeria Deposit Insurance Corporation (NDIC).
During the visit, Abimbola, who chairs the IRMC, reaffirmed the Commission’s statutory authority “to demand and obtain from any government agency, company, or individual, information, data, documents or returns relating to the remittance of accruals or disbursement of revenue from the Federation Account, and monitor any receipt however described, arising from the operation of any law.”
He stressed that the engagement with NDIC was crucial to the comprehensive review of EMT levy collections. “The visit is guided by the Commission’s mandate to ensure transparency, accountability, and optimum revenue mobilization, particularly in the aspect of Electronic Money Transfer levy for the period 2019–2022, and enhancing the Commission’s capacity to monitor its collections effectively,” Abimbola stated.
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.
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.
