The Nigerian government is set to implement a new Electronic Money Transfer Levy (EMTL) from September 9, 2024.
This levy will charge N50 on electronic transactions of N10,000 or more processed by fintech companies such as Opay, Palmpay, and Moniepoint. This step is part of the government’s strategy to increase revenue.
The fintech sector saw transactions worth N46.91 trillion in 2023, highlighting its significant role in Nigeria’s economy.
The EMTL, introduced under the Finance Act 2020, has previously generated N180.31 billion in revenue. The government aims to further increase this amount in 2024.
While the EMTL could affect digital banks known for low or zero transfer fees, the government hopes it will enhance revenue from the growing volume of cashless transactions.
With cashless payments surging, the new levy is expected to play a crucial role in boosting government revenue.