The Federal Government of Nigeria has reported generating a significant N103.7 billion in revenue from Electronic Money Transfer Levies during the first half of 2024.
This figure reflects a 7.55 percent increase compared to the N96.44 billion collected in the same timeframe in 2023, highlighting the growing reliance on digital payment platforms among Nigerians.
According to the Central Bank of Nigeria’s statistical bulletin, this increase signals a broader trend of rising electronic transactions, as both individuals and businesses increasingly turn to digital banking solutions for their financial needs.
The Electronic Money Transfer Levy was established as a revenue-generating measure under the Finance Act 2020, which amended the Stamp Duty Act to capitalize on the burgeoning electronic funds transfer sector in the country.
The EMT levy imposes a one-off charge of N50 on electronic receipts or transfers of N10,000 or more deposited in any financial institution.
A closer look at the revenue generated reveals fluctuations throughout the year. In January 2024, the EMTL revenue was recorded at N18.60 billion, representing a notable 26.57 percent decrease from the N25.33 billion collected in January 2023.
However, February 2024 saw a rebound, with collections increasing by 20.21 percent to N16.59 billion, up from N13.80 billion in February 2023.
March 2024 further demonstrated growth, as revenue surged to N18.60 billion, marking a substantial 53.41 percent rise compared to the N12.13 billion collected in March 2023.
April’s revenue slightly declined to N15.37 billion, reflecting a modest 1.85 percent increase over April 2023’s N15.09 billion.
In May 2024, the collection soared to N18.78 billion, showing a significant year-on-year increase of 24.24 percent from the N15.12 billion collected in May 2023.
Although June 2024 experienced a slight dip, with collections totaling N15.78 billion, it still represented a 5.40 percent increase over June 2023’s N14.97 billion.
The PUNCH previously reported an impressive spike in e-payment transactions within the country, which soared by 86.44 percent to N566.39 trillion in the first half of 2024, compared to N303.60 trillion in the same period of 2023.
This remarkable growth was driven by the Nigeria Inter-Bank Settlement System’s (NIBSS) National Instant Payment (NIP) platform, launched in 2011 to facilitate real-time interbank payments and instant value transfers.
The NIP platform has been made widely accessible to customers through various channels, including internet banking, mobile applications, USSD codes, ATMs, point-of-sale systems, and bank branches.
The increasing adoption of these digital payment solutions can be attributed to their convenience and efficiency in facilitating financial transactions.
In 2023, electronic payment transactions in Nigeria reached an unprecedented level, escalating by 55 percent to N600 trillion, up from N387 trillion in 2022.
However, as telecom operators in Africa make significant investments in the mobile money sector, they face a growing challenge with fraud, prompting urgent calls for enhanced security measures.
The Global System for Mobile Communications Association’s “State of the Industry Report on Mobile Money 2023” indicated that mobile money fraud in Africa surpassed $1 billion, raising alarms that ongoing security issues could hamper the widespread adoption of mobile money services.
