In 2025, total Electronic Money Transfer Levy (EMTL) allocations to the Federal Government, states, and Local Government Areas (LGAs) rose to N416.73 billion, up from N196.99 billion in 2024, representing a 111.55% year-on-year increase.
This is according to data from the Federation Account Allocation Committee (FAAC) compiled by Nairametrics Research from the Office of the Accountant-General of the Federation (OAGF).
Across the three tiers, EMTL receipts more than doubled, with the Federal Government receiving N62.51 billion, states N208.37 billion, and LGAs N145.86 billion.
The sharp increase reflects the continued expansion of electronic payment channels and improved levy compliance across financial institutions.
Monthly allocations peaked in October 2025, when N51.68 billion was disbursed across the three tiers, while February and April recorded the lowest monthly distributions, largely reflecting timing differences in remittances rather than a contraction in underlying digital transaction volumes.
This analysis is based on FAAC EMTL distributions for January–December 2025, regardless of the underlying transaction period, and reflects nominal allocations rather than gross levy collections.
What the data is saying
The surge in EMTL allocations in 2025 primarily reflects the rapid growth of digital financial transactions and improved enforcement, rather than a one-off spike in economic activity. While receipts rose by over 111% year-on-year, much of the expansion is tied to increased usage of electronic banking channels, fintech penetration, and stronger compliance monitoring.
The distribution pattern also shows geographic concentration, with a few economically dominant states and urban centres accounting for a disproportionately large share of EMTL-linked activity. Overall, the data suggests that the government is capturing more value from Nigeria’s shift toward a cash-lite economy, although digital transaction intensity remains uneven across regions.
Allocation across the three levels of government
1. Federal allocation in 2025
The Federal Government received N62.51 billion in EMTL allocations in 2025, up from N29.55 billion in 2024, representing a 111.55% year-on-year increase.
The highest allocations were recorded in October (N7.75 billion) and November (N7.18 billion), while February (N3.08 billion) and April (N3.75 billion) marked the lowest disbursements. The monthly pattern indicates fluctuations in remittance timing rather than structural weakness in electronic transaction flows.
2. States’ allocation in 2025
In total, N208.37 billion in EMTL was distributed to states in 2025, more than double the N98.49 billion recorded in 2024.
Allocations were heavily concentrated among a small group of economically active states, reinforcing structural differences in digital payment adoption and commercial activity nationwide.
The top five recipient states collectively received about N60.88 billion, accounting for roughly 29% of total EMTL allocations to states.
Top 5 states by EMTL allocation
- Lagos – N33.73 billion: Retained a dominant lead, accounting for over 16% of total state EMTL allocations.
- Kano – N7.88 billion: Reflecting strong trading and commercial transaction volumes.
- Oyo – N6.75 billion: Supported by sustained urban consumption and services activity.
- Rivers – N6.31 billion: Benefiting from industrial and energy-linked commercial flows.
- Kaduna – N6.21 billion: Driven by regional trade and administrative transaction volumes.
At the lower end, several states remained clustered around the N4 billion mark.
Bottom 5 states by EMTL allocation
- Bayelsa – N3.81 billion
- Nasarawa – N3.97 billion
- Ebonyi – N4.02 billion
- Yobe – N4.06 billion
- Taraba – N4.07 billion
The wide gap between Lagos (N33.73 billion) and Bayelsa (N3.81 billion) highlights the concentration of electronic transaction activity in a few urbanised economies, with many states still trailing in digital payment intensity.
3. Local Government Areas (LGAs) allocation in 2025
N145.86 billion was allocated to LGAs in 2025, up from N68.95 billion in 2024, also reflecting a 111.55% year-on-year increase.
EMTL allocations to LGAs displayed a similar geographic concentration, mirroring state-level patterns where a handful of states accounted for the bulk of cumulative LGA receipts.
Top 5 states by cumulative EMTL allocations to LGAs
- Lagos LGAs – N22.91 billion: The highest nationwide, reflecting dense commercial and financial activity.
- Kano LGAs – N7.59 billion: Supported by strong trade-linked digital transactions.
- Oyo LGAs – N5.75 billion: Benefiting from urban service-sector expansion.
- Katsina LGAs – N5.17 billion: Driven by population size and regional commerce.
- Rivers LGAs – N4.52 billion: Reflecting industrial and port-linked transaction flows.
Bottom 5 states by cumulative EMTL allocations to LGAs
- Bayelsa LGAs – N1.39 billion
- Gombe LGAs – N1.85 billion
- FCT LGAs – N1.88 billion
- Nasarawa LGAs – N1.97 billion
- Ebonyi LGAs – N2.01 billion
As with state allocations, LGA-level EMTL receipts remain skewed toward high-activity urban centres, reinforcing fiscal and digital-economy disparities at the sub-national level.
