News

FG Rakes in ₦84 Billion from Electronic Transfer Levy in Q1 2025

Published by Tope Fakinlede on April 27th, 2025.

FG Rakes in ₦84 Billion from Electronic Transfer Levy in Q1 2025

The Federal Government of Nigeria pulled in a hefty ₦84.05 billion from the Electronic Money Transfer Levy (EMTL) within the first quarter of 2025, according to figures sourced from a document by the Federal Inland Revenue Service, obtained by First Class Gists.

This amount marks a significant 76% year-on-year increase compared to the ₦47.74 billion recorded in Q1 of 2024. The boost reflects not just stronger compliance efforts but also the growing reliance on digital financial transactions across the country.

In January 2025 alone, collections hit ₦21.40 billion—up 29.1% from ₦16.59 billion in January the previous year. February saw the sharpest leap, with EMTL earnings soaring to ₦36.64 billion, a 132% spike from ₦15.79 billion in February 2024. March brought in ₦26.01 billion, up 69.2% from the ₦15.37 billion collected in the same month last year.

Despite February outperforming January by 71%, March saw a 29% dip from the previous month’s high. Nonetheless, March still outshone the same month in 2024 by a wide margin.

The EMTL, enacted under the Finance Act of 2020 and operational since 2021, charges ₦50 on electronic transfers of ₦10,000 and above. Revenue from the levy is distributed among federal, state, and local governments using an approved sharing formula, reinforcing Nigeria’s efforts to diversify income beyond oil.

Typically, the Federal Government receives 15% of the proceeds, while the remaining 85% goes to states and local governments.

First Class Gists also discovered that about 96% of the total EMTL revenue was allocated among the three levels of government. Data from the Office of the Accountant General of the Federation showed that the Federation Account Allocation Committee (FAAC) distributed ₦80.69 billion in EMTL revenue in Q1 2025, up from ₦46.45 billion in the same period of 2024.

From this sum, the Federal Government got ₦3.082 billion, states received ₦7.192 billion, and local governments were allocated ₦10.274 billion in January.

In February, total disbursement climbed to ₦35.171 billion, with ₦5.276 billion for the Federal Government, ₦17.585 billion for states, and ₦12.310 billion for local councils.

By March, the shared amount was ₦24.971 billion—₦3.746 billion to the Federal Government, ₦12.485 billion to states, and ₦8.740 billion to local authorities.

This distribution pattern marked a notable increase from Q1 2024 figures. In January 2024, ₦15.922 billion was shared, with ₦2.388 billion for the Federal Government, ₦7.961 billion for states, and ₦5.573 billion for local councils.

In February 2024, from ₦15.157 billion collected, the Federal Government took ₦2.274 billion, states received ₦7.578 billion, and local governments got ₦5.305 billion. March 2024 figures showed ₦15.369 billion shared—₦2.213 billion to the Federal Government, ₦7.377 billion to states, and ₦5.164 billion to local governments.

Overall, total EMTL revenue distributed in Q1 2025 rose by 73.7% compared to the same period the year before.

Breaking it down: Federal Government allocations grew from ₦6.875 billion in Q1 2024 to ₦12.104 billion in Q1 2025—up by 76%. States received ₦37.262 billion in Q1 2025, a 62.6% jump from ₦22.916 billion the year before. Local governments saw the biggest leap, with their share climbing 88% from ₦16.659 billion in Q1 2024 to ₦31.325 billion in 2025.