In December 2024, President Bola Tinubu’s administration expanded the Electronic Money Transfer Levy (EMTL) to include fintech operators such as Opay, Palmpay, and Moniepoint.
The ₦50 per transaction charge, introduced at the time, has generated an additional ₦84.97 billion in government revenue within six months, according to data from the Federation Account Allocation Committee (FAAC).
Checks reveal that between December 2024 and May 2025, EMTL collections surged to ₦185.86 billion, marking an 84.22% jump compared to ₦100.89 billion in the same period of 2024 — a result that underscores the administration’s decision to broaden the levy’s scope.
The policy, in line with Federal Inland Revenue Service (FIRS) guidelines, mandated fintech firms to comply with EMTL, which had initially been scheduled for September 2024 but only came into effect in December. The levy, first introduced in the Finance Act 2020 as an update to the Stamp Duty Act, imposes a ₦50 fee on electronic transfers of ₦10,000 or more and was originally applied solely to banks.
The aim was to diversify revenue sources away from oil and capitalise on the fast-growing e-payments sector, which processed a record ₦1 quadrillion in 2024. Fintechs have played a crucial role in this growth, handling ₦46.91 trillion in transactions in 2023 and ₦79.55 trillion in 2024, particularly serving rural and underserved populations that remain outside traditional banking systems.
CBN Governor Olayemi Cardoso observed that mobile-based payment innovations have been a “transformative tool” for financial inclusion, which reached 64% in 2023.
“There is still a gap in the number of adult population that is unbanked, and this responsibility falls on fintechs,” said Palmpay Managing Director, Chika Nwosu, during a televised interview.
Mobile money transaction values through platforms such as Opay and Palmpay skyrocketed by 2,507.94% between 2020 and 2024, driven by promises of low-cost or even free transfers.
“Fintech services, like transfers, are provided free of charge, or nearly so,” Nwosu emphasised.
Although many feared extending the EMTL to fintechs might discourage users, a GSMA report suggested that similar taxes in other countries, such as Uganda and the Republic of Congo, reduced transaction volumes and values. However, Nwosu explained that customers have adjusted.
“This is a government policy, there is nothing we can do about it, and customers are okay with it and are not complaining anymore,” he said.
Despite the tax boost, analysts warn that small-value transactions — which surged during the CBN’s failed cashless policy rollout — still dominate, with nearly 45% of transfers under ₦6,000 and only 25% reaching the ₦10,000 EMTL threshold. Fintechs have thrived on these microtransactions, offering quick and inexpensive services.
“The goal remains financial inclusion,” Nwosu reiterated.
