Fintech Tax Win: FG’s Electronic Transfer Levy Revenue Soars 110% to ₦360bn in 10 Months

The Federal Government’s aggressive push to tax digital transactions has yielded a massive windfall, with revenue from the Electronic Money Transfer Levy (EMTL) more than doubling in just ten months, shrugging off earlier warnings from economists that the move would cripple the fintech sector.

“The percentage increases were significant across the entire period, pointing to a sustained rise in taxable transfer volumes,” the data analysis revealed. Between January and October 2025, the government raked in N360.29 billion—a stark contrast to the N170.92 billion collected during the same period last year. The crackdown, which began in earnest last December, forced platforms like Moniepoint and OPay to start deducting N50 on transfers, a move critics at the time labeled a “tax on poverty”.

The surge follows a directive from the Federal Inland Revenue Service (FIRS) mandating that all financial institutions, including previously grey-area fintechs, automatically deduct N50 on electronic transfers of N10,000 or above. While September 2025 saw the single strongest jump—skyrocketing 180% to N53.84 billion—the policy faced fierce pushback when first introduced.

Former Chief Economist at Zenith Bank, Marcel Okeke, had previously cautioned that the levy was “ill-timed” and could lead to the “demonetisation” of the economy by discouraging digital use.

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Despite those warnings, the sheer volume of transactions suggests Nigerians have largely absorbed the cost. The revenue provides a critical lifeline for state governments, who receive 85% of the proceeds under the current sharing formula.

“The Federal Government’s move to impose a N50 levy on fintech transactions is driven by a desire to boost revenue,” Okeke said, noting the risks involved. Yet, with the FIRS set to transition into the Nigeria Revenue Service (NRS) in 2026, the data suggests the government is doubling down on this strategy rather than backing away.