By Abdullahi Mukhtar Algasgaini
The Federal Government generated a total of N8.09 trillion from Value Added Tax (VAT) and the Electronic Money Transfer Levy (EMTL) between January and November 2025, analysis of documents from the Federal Account Allocation Committee (FAAC) has shown.
Of the amount, N7.69 trillion came from VAT collections, while N403.68 billion was realised from EMTL during the 11-month period.VAT receipts opened the year at N771.86 billion in January but declined to N654.46 billion in February and N637.61 billion in March. Collections rose slightly to N642.26 billion in April and climbed further to N742.82 billion in May before falling again to N678.16 billion in June.
Revenue improved in the second half of the year, with N687.9 billion recorded in July and N722.61 billion in August. September saw a peak of N872.63 billion, before dropping to N719.82 billion in October and N563.04 billion in November.
EMTL collections followed a similar fluctuating pattern. Revenue stood at N21.40 billion in January, rose to N36.63 billion in February, and fell to N26.01 billion in March. April recorded N40.48 billion, while N28.82 billion was collected in May.
Collections increased to N30 billion in June and N39.16 billion in July before declining to N33.68 billion in August. September recorded the highest EMTL revenue at N53.83 billion, followed by N49.86 billion in October and N43.4 billion in November.
Meanwhile, EMTL will be replaced by stamp duties from January 1, 2026, in line with the Nigeria Tax Act (NTA) 2025. Under the new regime, a N50 stamp duty will be charged on transfers of N10,000 and above, with the sender bearing the cost, as mandated by the Federal Inland Revenue Service (FIRS).
Digital payment firm PalmPay, in a notice to customers, said the charge would not apply to transfers between a customer’s own accounts where names and BVN or NIN match, stressing that the duty is remitted directly to the Federal Government.
Daily Trust reports that EMTL has become a growing source of non-oil revenue, generating N219.11 billion in 2024, exceeding its N174.24 billion projection. The growth was driven largely by the extension of the levy to fintech platforms such as OPay, PalmPay and Moniepoint.
Under the new stamp duty regime, government revenue is projected to rise to N456.07 billion in 2026, N579.82 billion in 2027 and N752.45 billion in 2028, figures already factored into the Medium-Term Expenditure Framework (MTEF).
While officials insist no new tax has been introduced, analysts note that the N50 charge, though small individually, could generate hundreds of billions of naira annually due to the high volume of digital transactions, even as concerns persist over its impact on small businesses and POS operators.