In the first half of 2024, the Federal Government of Nigeria generated N103.7 billion in revenue from Electronic Money Transfer Levies (EMTL). This represents a 7.55% increase compared to the N96.44 billion collected during the same period in 2023, according to data from the Central Bank of Nigeria’s statistical bulletin.
This increase reflects the growing use of digital payment platforms and a higher volume of electronic transactions as more Nigerians and businesses embrace digital banking solutions.
The EMTL was introduced as a source of government revenue in the Finance Act 2020, which amended the Stamp Duty Act to capitalise on the growth of electronic funds transfer in Nigeria. It is a one-off charge of N50 on electronic receipts or transfers of N10,000 or more, applicable to any deposit money bank or financial institution account.
According to data from the Nigeria Inter-Bank Settlement System (NIBSS), e-payment transactions in the country increased by 86.44% to N566.39 trillion in the first half of 2024, compared to N303.60 trillion in the same period of 2023.
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The Nigeria Instant Payment (NIP) platform, launched in 2011 by NIBSS, is an online real-time interbank payment system enabling instant value transfers. Banks have made this platform accessible to customers through various channels, including internet banking, mobile apps, USSD, ATMs, POS terminals, and bank branches.
The surge in e-payment transactions is attributed to the increasing adoption of digital payment platforms by businesses and individuals, driven by the convenience and efficiency they offer in financial transactions.
In 2023, electronic payment transactions in Nigeria reached an all-time high, rising by 55% to N600 trillion, compared to N387 trillion in 2022.
By Oluwatosin Ogunjuyigbe @BusinessDairly
