The Nigerian government earned N80.86 billion. In the first six months of 2023 from the Electronic Transfer Levy (EMT).
The EMT was introduced as a replacement for Stamp Duty and charges a single fee of N50 on electronic deposits of N10,000 and above.
It was created to generate additional revenue from the growing use of electronic funds transfer in the country.
The EMT has been a steady source of income for the federal, state, and local governments. In the first half of 2023, it generated N13.8 billion in January, N11.65 billion in February, N14.49 billion in March, N15.12 billion in April, N14.37 billion in May, and N11.44 billion in June.
Notably, the government exceeded its projected revenue from the EMT for 2023. The Budget Office had hoped to earn N137.03 billion, but it has already earned N80.86 billion in the first half of the year.
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Electronic payment has seen a surge in adoption since the COVID-19 pandemic hit in 2020. The total value of electronic transactions in Nigeria increased from N108.42 trillion in 2019 to N278.38 trillion in 2021. By 2022, cashless transactions reached N395.47 trillion.
To further promote financial inclusion and support innovation, the Nigerian Inter-Bank Settlement System (NIBSS) has reduced its transaction processing fee for NIBBS Instant Payment from N5 to N3.75k. This reduction is set to take effect from July 1, 2023.
The EMT has proven to be a significant revenue source for the federal government. It is expected to continue contributing to the country’s finances, with the increasing adoption of electronic payment methods.
