Bank clients pay N133.89 billion digital cash switch levy in 8 months 

Nigerian bank clients paid a complete of N133.89 billion as digital cash switch (EMTL) levy to the federal government between January and August this yr.

This was revealed within the 2025-2027 Medium Time period Expenditure Framework and Fiscal Technique Paper (MTEF/FSP), which highlights the federal government’s income for the interval.

Banks deduct the N50 EMTL levy on behalf of the federal government on each transaction from N10,000 and above.

The quantity realized in eight months represents 76% of the federal government’s income projection from the supply in 2024, which was put at N175.11 billion within the yr’s price range.

Extra income focused for 2025 as EMTL web is expanded 

In the meantime, the federal government is concentrating on extra income from the EMTL subsequent yr as the gathering of the levy has been prolonged from business banks to cowl transactions on all fintech platforms.

In accordance with the MTEF/FSP doc, the federal government hopes to generate N228.85 billion from EMTL in 2025, representing a 31% improve over the 2024 income projection.

• In accordance with the fintech firms, this deduction is in accordance with the Federal Inland Income Service (FIRS) directive.

• Nevertheless, the deduction didn’t begin till December 1, 2024, when the fintechs issued a contemporary notification to their clients.

The obligatory deduction dropped at an finish the period of free banking companies that among the fintechs present, though the fees go to the federal authorities.

What it is best to know 

The Digital Cash Switch Levy (EMTL) is a one-time cost of N50 on digital cash transfers or receipts in Nigeria. It applies to all digital transfers of funds in a Nigerian-licensed bank or monetary establishment, with the next exceptions:

• Cash paid into one’s personal account

• Cash is transferred electronically between accounts of the identical proprietor throughout the identical bank.

The EMTL was launched within the Finance Act 2020 to encourage the expansion of digital funds transfers in Nigeria. Income from the EMTL is shared among the many three tiers of presidency.

Income derived from the EMTL is shared among the many three tiers of presidency primarily based on derivation, with the Federal Authorities receiving 15%, state governments receiving 50%, and native governments getting 35%.

• In December final yr, the FIRS additionally directed deposit banks to deduct and remit the EMTL on international foreign money (FCY) transactions going ahead.
• Earlier than that point, N50 cost on transactions from above N10,000 was solely relevant to native foreign money transactions.
• The banks in January this yr started the deduction of EMTL on previous international foreign money transactions protecting 2021 to 2023 as directed by the tax regulator.