Data from the Federation Account Allocation Committee shows that electronic transfer levies generated N80.86 billion for the three tiers of government in the first half of 2023. The levy, introduced as a revenue source in the Finance Act 2020, imposes a N50 charge on electronic transfers of N10,000 or more.
The government aims to surpass its projected earnings of N137.03 billion for 2023, with N157.59 billion expected in 2024 and N189.11 billion in 2025. The surge in electronic transactions is attributed to increased adoption since the pandemic’s onset in 2020.
Opinion: The success of electronic transfer levies in generating revenue demonstrates the potential of tapping into digital transactions for government income. As cashless transactions continue to rise, the Nigerian government should explore further opportunities to optimize revenue collection through digital channels.
