The Federal Government of Nigeria has reported a remarkable revenue generation of N103.7 billion from Electronic Money Transfer Levies in the first half of 2024. This figure indicates a 7.55% increase from the N96.44 billion collected during the same period in 2023, highlighting the increasing reliance on digital payment platforms among Nigerians and businesses.
Initiated through the Finance Act 2020, the Electronic Money Transfer Levy aims to capitalize on the growing trend in electronic funds transfer within the country. This levy imposes a one-time charge of N50 on any electronic receipt or transfer of money exceeding N10,000, deposited in any bank or financial institution.
In a detailed breakdown of monthly revenues, January 2024 saw a decrease to N18.60 billion from N25.33 billion in January 2023, demonstrating a 26.57% decline. However, the following months showed a turn-around with February’s revenue rising to N16.59 billion—a 20.21% increase from the previous year’s N13.80 billion. March continued this positive trend, recording N18.60 billion, an impressive jump of 53.41% compared to N12.13 billion in March 2023.
April maintained stability with a marginal increase to N15.37 billion, representing a 1.85% growth from N15.09 billion in April 2023. Subsequently, May 2024 marked a significant year-on-year growth, with earnings reaching N18.78 billion, 24.24% higher than the previous year’s N15.12 billion. Despite a slight decline in June to N15.78 billion—still a 5.40% increase from N14.97 billion in June 2023—the overall trend underscores a robust digital transaction landscape.
In the first half of 2024, e-payment transactions surged by 86.44% to N566.39 trillion, compared to N303.60 trillion during the same timeframe last year, according to the Nigeria Inter-Bank Settlement System data. The Nigeria Instant Payment (NIP) platform, launched in 2011, has transformed the financial landscape by enabling seamless interbank transactions across various channels including mobile apps and ATMs.
This growth in electronic payments reflects a broader trend as individuals and businesses increasingly leverage digital solutions for heightened convenience and efficiency in financial interactions. In 2023, Nigeria’s electronic payment transactions reached an unprecedented high of N600 trillion, representing a 55% increase from N387 trillion in 2022.
However, this escalating adoption comes with challenges. Telecom operators across Africa are grappling with a significant fraud crisis in the mobile money sector, with losses exceeding $1 billion. This situation underscores the urgent need for enhanced security measures to foster trust and safeguard the adoption of mobile money services.
