05 May 2025

The Nigerian federal government has reported that the Electronic Money Transfer Levy (EMTL) generated $49.5 million in revenue, with fintech companies contributing $18 million to this total.
According to the Federation Account Allocation Committee, this represents a significant 56.8% increase compared to the $31.6 million recorded during the same period in 2024.

While the levy initially targeted established banking institutions, fintech firms have now been included in its scope due to their remarkable growth, which has seen a 2,507.94% increase in transaction values since 2020. The EMTL is part of the government’s broader initiative to regulate the rapidly expanding fintech sector, which processed transactions valued at $29 billion in 2023 and approximately $49.3 billion in 2024.

Enacted through the Finance Act 2020 as an amendment to the Stamp Duty Act, the EMTL imposes a charge of $0.03 (N50) on electronic transactions amounting to $6.19 or more, conducted through banks and financial institutions. This tax aims to leverage the growth of electronic payments, projected to surpass $619.70 billion in total transactions by 2024.

In response to the burgeoning fintech landscape, the government has opted to broaden its tax base, anticipating annual EMTL collections to rise by 31.35%. The Medium Term Fiscal Framework for 2025-2027 envisions EMTL revenue reaching $142 million in 2025, an increase from $108 million in 2024.