FG earns N103.7bn from digital cash transfers in six months

The Federal Government has generated N103.7bn in revenue from the Electronic Money Transfer Levies in the first half of 2024.

According to data from the Central Bank of Nigeria’s statistical bulletin, this represents a 7.55 per cent increase compared to the N96.44bn collected during the same period in 2023.

The figure highlights the growing use of digital payment platforms and a higher volume of electronic transactions as more Nigerians and businesses embrace digital banking solutions.

Electronic money transfer levy was introduced as a source of government revenue in the Finance Act 2020, which amended the Stamp Duty Act to tap into the growth of electronic funds transfer in Nigeria.

The EMT levy is a singular and one-off charge of N50 on electronic receipt or transfer of money deposited in any deposit money bank or financial institution on any type of account on sums of N10,000 or more.

In January, the revenue from EMTL stood at N18.60bn, reflecting a 26.57 per cent decrease compared to N25.33bn in the same period of last year.

However, revenue from EMTL rose at a slower pace in February, increasing 20.21 per cent to N16.59bn from N13.80bn in February 2023.

It picked up in March, jumping by 53.41 per cent to N18.60bn, compared to N12.13bn in the prior period last year.

The revenue in April was N15.37bn, which was a marginal 1.85 per cent increase compared to N15.09bn collected in April 2023.

May saw a more substantial year-on-year increase, with earnings reaching N18.78bn, 24.24 per cent higher than the N15.12bn collected in May 2023.

Although revenue generated from EMTL in June saw a slight dip compared to May, with N15.78bn collected, it was a 5.40 per cent increase from the N14.97bn recorded in the same period of last year.

The PUNCH reports that e-payment transactions in the country jumped by 86.44 per cent to N566.39tn in the first half of 2024 from N303.60tn in the same period of last year, according to data from the Nigeria Inter-Bank Settlement System.

The NIP, launched in 2011 by NIBSS, is an online real-time interbank payment platform that enables instant value transfers.

Banks have since made the NIP platform accessible to customers through various channels, such as internet banking, mobile apps, USSD, ATMs, POS, and bank branches.

The surge in e-payment transactions was linked to the increasing adoption of digital payment platforms by businesses and individuals, driven by convenience and efficiency in financial transactions.

Last year, electronic payment transactions in the country hit an all-time high, rising by 55 per cent to N600tn, compared to N387tn in 2022.

However, as telecom operators in Africa increasingly invest in the mobile money sector, they confront a major fraud crisis, prompting calls for improved security measures.

According to the Global System for Mobile Communications Association’s State of the Industry Report on Mobile Money 2023, mobile money fraud in Africa exceeded $1bn, raising concerns that security issues could impede the adoption of mobile money services.