…as fintech transaction value skyrockets by 2500%
The Nigerian fintech sector is proving to be a significant revenue driver for the federal government, contributing a substantial $18 million to the $49.5 million generated from the Electronic Money Transfer Levy (EMTL).
This figure, recently reported by the Federation Account Allocation Committee, represents a remarkable 56.80 percent increase compared to the $31.6 million recorded during the corresponding period in 2024.
The EMTL, a one-off charge of N50 on electronic transfers or receipts of N10,000 or more deposited in any bank or financial institution, has expanded its reach to include fintech companies.
This inclusion comes on the heels of an astounding 2,507.94 percent growth in transaction values within the fintech space since 2020.
Previously, established banking institutions were the primary contributors to this levy. However, the booming fintech sector, which facilitated transactions worth $29 billion in 2023 and $49.3 billion in 2024, has now been brought into the fold as part of the government’s regulatory efforts.
Data from earlier periods highlights the growing impact of the EMTL. Between January and August 2024, Nigerian bank customers paid a total of N133.89 billion in EMTL, with an additional N31.2 billion generated in December 2024 alone.
The EMTL, established through the Finance Act 2020 as an amendment to the Stamp Duty Act, levies $0.03 (N50) on electronic transactions of $6.19 (N10,000) or more conducted via banks and other financial institutions. This tax aims to capitalize on the escalating adoption of electronic payments, with total transaction values projected to exceed $619.70 billion by the end of 2024.
Anticipating the continued expansion of the fintech landscape, the government has broadened its tax base, projecting a 31.35 percent annual increase in EMTL collections. The Medium Term Fiscal Framework for 2025-2027 forecasts EMTL revenue to reach $142 million in 2025, a significant rise from the $108 million estimated for 2024.
It is worth noting that industry experts have voiced concerns regarding the potential implications of these additional taxes on consumers.
