The Federal Government of Nigeria generated N84.05 billion from the Electronic Money Transfer Levy (EMTL) in the first quarter of 2025, according to a recent report by the Federal Inland Revenue Service (FIRS).
The figure represents a 76% increase compared to the N47.74 billion collected during the same period in 2024. The surge is attributed to improved tax enforcement and the growing popularity of cashless transactions across the country.
A breakdown of the earnings shows that N21.40 billion was collected in January, reflecting a 29.1% rise compared to January 2024. Collections surged to N36.64 billion in February, marking a 132% increase from the previous year, before moderating to N26.01 billion in March, a 69.2% rise compared to March 2024 but 29% lower than February’s record.
The EMTL, introduced under the Finance Act 2020 and implemented from 2021, imposes a N50 levy on electronic money transfers of N10,000 and above. The proceeds are distributed among the three tiers of government, with the Federal Government receiving 15%, while states and local governments share 85%.
Reports indicate that 96% of the EMTL collections in Q1 2025 were distributed through the Federation Account Allocation Committee (FAAC). Between January and March 2025, FAAC shared N80.69 billion generated from the EMTL, compared to N46.45 billion shared during the same period in 2024.
In January 2025, N20.548 billion was disbursed, with the Federal Government receiving N3.082 billion, states N7.192 billion, and local councils N10.274 billion. February’s higher collections resulted in a distribution of N35.171 billion, while March saw N24.971 billion shared among the tiers of government.
Year-on-year, the share for the Federal Government rose from N6.875 billion in Q1 2024 to N12.104 billion in Q1 2025. Allocations to state governments increased from N22.916 billion to N37.262 billion, while local government allocations almost doubled, growing from N16.659 billion to N31.325 billion.
The sharp increase in cash transfer levy collections reflects Nigeria’s broader shift towards a digital economy and highlights the success of government efforts to diversify revenue streams beyond the oil sector.
