The Federal Government said that Electronic Money Transfer Levy (EMTL) generated ₦15.643 billion for the country as the three government tiers shared a total of ₦1.203 trillion in allocation for August 2024
The Federation Account Allocation Committee (FAAC) said it distributed a total of ₦1.203 trillion to the federal, state, and local governments in September 2024, covering revenues generated in August.
A key highlight is the Electronic Money Transfer Levy (EMTL), which contributed ₦15.643 billion.
The September FAAC meeting, chaired by Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, shared this amount from a gross revenue of ₦2.278 trillion, which includes statutory revenue, Value Added Tax (VAT), EMTL, and exchange rate differences, according to a statement by the agency.
“From the stated amount inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL) and Exchange Difference (ED), the Federal Government received ₦374.925 Billion, the States received ₦422.861 Billion, the Local Government Councils got ₦306.533 Billion, while the Oil Producing States received ₦99.474 Billion as Derivation, (13% of Mineral Revenue),” the FAAC announced.
FAAC on Electronic Money Transfer Levy contributions
The EMTL, which has become a source of government revenue since its introduction in 2020, generated ₦15.643 billion in August.
According to the FAAC communiqué, “the sum of ₦15.643 billion from Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received ₦2.252 billion, States got ₦7.509 billion, Local Government Councils received ₦5.256 billion, while ₦0.626 billion was allocated for Cost of Collection.”
The EMTL is a ₦50 levy applied to electronic transfers of ₦10,000 and above, as mandated by the Finance Act of 2020. It is designed to generate revenue while also monitoring Nigeria’s growing digital payment systems. The collected funds are distributed across the three tiers of government, with the Federal Government receiving 15%, states 50%, and local governments 35%.
The levy applies to transactions made through platforms like mobile banking, internet banking, and other electronic payment systems.
The report further disclosed that “Companies Income Tax (CIT), Value Added Tax (VAT), Import and Excise Duties, Electronic Money Transfer Levy (EMTL), Petroleum Profit Tax (PPT), Oil and Gas Royalty and Customs External Tariff levies (CET) all recorded decreases.
The Minister “emphasised that the policies are for the good of the nation, it is for our own good, we have to go through turbulent situation before the economy will stabilise for good.”
Other Revenue Sources
-Value Added Tax (VAT): ₦573.341 billion in VAT was collected, of which ₦533.895 billion was distributed to the government. This was a decrease of ₦51.988 billion compared to the previous month.
-Statutory Revenue: Gross statutory revenue for August stood at ₦1.221 trillion, a drop of ₦165.994 billion from July’s figure.
– Exchange Rate Difference: ₦468.245 billion from exchange differences was also distributed, with ₦220.964 billion going to the federal government.
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