EMTL Revenue Jumps 111% to N416.73 Billion in 2025, Highlighting Digital Payment Growth
According to official data from the Federation Account Allocation Committee (FAAC), total Electronic Money Transfer Levy (EMTL) allocations to Nigeria’s federal, state, and local governments soared to N416.73 billion in 2025. This figure represents a striking 111.55% year-on-year increase from the N196.99 billion distributed in 2024. The data, compiled from the Office of the Accountant-General of the Federation, underscores the accelerating shift toward a cash-lite economy and improved levy compliance across financial institutions.
Distribution Across Government Tiers and Monthly Trends
The N416.73 billion was shared across the three tiers of government, with receipts more than doubling for each. The Federal Government received N62.51 billion, state governments shared N208.37 billion, and Local Government Areas collected N145.86 billion. Monthly disbursements peaked in October 2025 at N51.68 billion, while February and April recorded the lowest distributions. This monthly variance is attributed primarily to timing differences in remittances rather than a decline in digital transaction volumes.
Drivers of Growth and Geographic Concentration
The dramatic surge in EMTL allocations is directly tied to the rapid expansion of digital financial transactions, increased fintech penetration, and stronger compliance monitoring. The distribution pattern reveals a significant geographic concentration of this digital activity. A small group of economically dominant states accounted for a disproportionate share of the allocations, highlighting uneven digital transaction intensity across regions. For instance, the top five recipient states collectively received approximately N60.88 billion, which is roughly 29% of the total allocations to states. The wide gap between Lagos State, which received N33.73 billion, and other states like Bayelsa at N3.81 billion, reinforces existing structural differences in commercial activity and digital payment adoption. This growing revenue stream provides crucial funds that states can use for various expenditures, even as other financial pressures, such as debt service under certain frameworks, remain a broader national consideration.
It is important to note that this analysis reflects FAAC distributions for the 2025 calendar year and represents nominal allocations to governments, not gross levy collections. The data confirms that the Nigerian government is capturing increasing value from the digital economy, a trend that may interest international observers like the World Bank plans for economic support and monitoring. This growth occurs within a dynamic financial sector landscape where regulatory actions, such as when the CBN revokes licences, can influence the ecosystem, and where commodity trading firms like the Kian Smith list of partners operate alongside digital payment channels. The consistent rise in EMTL revenue, despite potential local disruptions like a Lagos shut down for events, points to the resilience and deepening roots of electronic payments in Nigeria.
