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Nigeria collects N78.95 bln from electronic transfer levy in first half of 2024

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Nigeria’s government has amassed N78.95 billion from the N50 levy on electronic bank transfers in the first five months of 2024, according to findings by Sunday PUNCH.

An analysis of the Federal Allocation Accounts Committee (FAAC) report, released by the National Bureau of Statistics (NBS), revealed that 36 state governments received a total allocation of N31.84 billion from January to April.

The Electronic Money Transfer Levy (EMTL), introduced in the Finance Act 2020, amended the Stamp Duty Act to capitalize on the increasing use of electronic funds transfers.

The levy is a one-time charge of N50 on electronic receipts or transfers of money deposited in any deposit money bank or financial institution on accounts for sums of N10,000 and above.

Revenue from the EMTL is distributed among the three tiers of government: the Federal Government receives 15%, state governments 50%, and local governments 35%.

The report indicated that the government collected N15.9 billion in January, N15.15 billion in February, N14.75 billion in March, N18 billion in April, and N15.14 billion in May.

A breakdown of the federal allocation showed the states received N8.93 billion in January, N7.96 billion in February, N7.58 billion in March, and N7.38 billion in April from the bank transfer levy.

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Further analysis detailed the allocations per state: Abia State received N797.79 million, Adamawa N729.16 million, Akwa-Ibom N796.81 million, Anambra N1.03 billion, Bauchi N818.98 million, Bayelsa N607.2 million, Benue N805.76 million, and Borno N811.03 million.

According to the 2023–2025 Medium Term Expenditure Framework and Fiscal Strategy Paper, the government projects to collect N137.03 billion in 2023, N157.59 billion in 2024, and N189.11 billion from the EMTL.

In 2023, digital banking channels generated approximately N438 billion for 10 financial institutions, a 37.54% increase from N318.64 billion the previous year, as shown in their annual reports.

E-business income includes revenue from electronic channels, card products, and related services such as mobile applications, USSD channels, ATMs, agency banking, internet banking, point-of-sale payments, and credit and debit card transactions.

Lilian Phido, Head of Corporate Communications at NIBSS, highlighted the growing acceptance and stability of digital payment platforms.

“It is very clear that more and more people are accepting the channels of payment that are available and the platforms are stable. With stability, these components have grown. With stability, more and more people are moving,” she said.

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