Between January and August 2024, Nigerian bank customers paid N133.89 billion in Electronic Money Transfer Levy (EMTL), underlining the government’s push to expand the tax bracket amid dwindling oil earnings.

The figure, revealed in the 2025-2027 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP), represents 76% of the N175.11 billion target set for EMTL in the 2024 budget.

The EMTL, introduced under the Finance Act 2020, imposes an N50 charge on every electronic transfer or receipt of N10,000 and above, with deductions carried out by banks on behalf of the government. This measure is part of the government’s broader strategy to expand the tax net and increase internally generated revenue as oil revenues—the traditional backbone of Nigeria’s economy—continue to decline due to theft, and production shortfalls.

As part of efforts to enhance revenue from the EMTL, the government expanded its application in 2024 to include transactions processed by financial technology platforms. In September, major fintech companies such as OPay, Moniepoint, and PalmPay notified their customers of the planned levy implementation, which was later enforced on December 1, 2024.

This extension marks a significant shift, as fintech platforms previously offered free or low-cost transaction services, a feature that made them attractive alternatives to traditional banks. With the EMTL now uniformly applied across all financial service providers, including fintech platforms, the government has effectively eliminated the disparity between the two sectors, ensuring broader compliance and collection.

Impact on Revenue and Customers

The extension of the EMTL to fintech platforms is expected to boost collections significantly in the coming year, with the government projecting N228.85 billion in revenue for 2025. This represents a 31% increase over the 2024 target, highlighting the importance of the levy in bridging the country’s revenue gap.

For customers, the uniform implementation of the EMTL has ended the era of free banking services offered by FinTech platforms. While these platforms were previously celebrated for their affordability, the mandatory N50 deduction now aligns them with traditional banking practices, adding to the financial burden on Nigerians, particularly in a challenging economic climate.

The Federal Inland Revenue Service (FIRS) has also broadened the EMTL’s scope by including foreign currency transactions. Initially applicable only to local currency transactions, the levy now covers all electronic transfers in foreign currencies. Banks began applying this directive retroactively in January 2024, deducting the N50 charge on foreign currency transactions conducted between 2021 and 2023.

This development reflects the government’s determination to maximize revenue from all possible avenues, particularly as electronic transactions continue to grow in volume and value.

Revenue derived from the EMTL is shared among the three tiers of government, with the federal government receiving 15%, state governments 50%, and local governments 35%. This distribution model aims to ensure that the benefits of the levy are felt across the country, addressing the fiscal needs of different levels of governance.

However, while the EMTL forms part of a broader strategy by the federal government to diversify its revenue streams, the levy raises questions about the impact on financial inclusion and the cost of banking services, especially for low-income earners.

Many are concerned that while the levy provides a crucial source of income, its growing scope and application may further strain citizens already grappling with economic hardship.

The Nigerian House of Representatives has launched an investigation into the Central Bank of Nigeria’s (CBN) planned retirement of over 1,000 staff members and the proposed N50 billion payoff earmarked for the affected employees.

The lawmakers also called on the apex bank to suspend the mass retirement until the investigation is concluded.

The resolution followed a motion presented by Representative Kama Nkemkama during Tuesday’s plenary session. Drawing attention to a report published by Daily Trust on December 2, 2024, Nkemkama raised concerns about the transparency and fairness of the process.

The lawmaker questioned the criteria used for selecting employees for retirement and whether due process, as stipulated by public service guidelines and labor laws, had been followed.

Nkemkama highlighted the potential socio-economic consequences of the move, including increased unemployment, heightened public dissatisfaction, and broader economic instability. He urged his colleagues to ensure the process adheres to legal frameworks while safeguarding public interest.

The House subsequently approved the formation of an ad hoc committee tasked with investigating the mass retirement process. The committee will evaluate the criteria for selecting affected employees, assess the transparency of the N50 billion payoff scheme, and ensure accountability in the CBN’s restructuring initiative.

The Mass Retirement Plan

The mass retirement is part of what the CBN has described as a “strategic realignment of its workforce,” led by its Board of Governors under the leadership of Governor Olayemi Cardoso. This follows a series of workforce reductions in the past year, including the disengagement of 17 directors appointed under former CBN Governor Godwin Emefiele. Notably, those 17 directors have not been replaced, raising questions about the apex bank’s long-term operational capacity.

According to Daily Trust, a circular issued by the CBN three weeks ago invited employees to apply for an Early Exit Package (EEP). The circular stated that the EEP is a voluntary program providing financial and non-financial incentives for early separation, including extended medical care and financial planning support. The application period for the EEP ends on December 7, with an effective exit date of December 31.

The EEP offers financial incentives based on an employee’s cadre and remaining years of service. For senior supervisors to deputy managers, the payout covers the remaining service period, capped at 60 months of gross annual emoluments. For managers, the cap is 36 months, while other cadres are capped at 18 months.

A staff member who spoke to Daily Trust anonymously disclosed, “I’ve worked for four years in the bank, and they’re offering me between N92 million and N97 million. Some managers, despite their higher rank, are only entitled to N64.5 million.”

Another employee described the atmosphere at the CBN as tense, revealing that as of Friday, 860 staff members had already applied for the EEP. “There is serious apprehension. You can imagine the atmosphere—it is terrible,” the employee told Daily Trust.

Staff’s Fight to Stay

The planned retirement has also drawn scrutiny for its perceived bias against certain cadres. Earlier, a group of sacked directors approached the National Industrial Court in Abuja, seeking an injunction to halt their replacements, citing unlawful termination.

The CBN’s Human Resources Policies and Procedures Manual outlines specific guidelines for employee separation, emphasizing fairness, consultation, and the opportunity for appeal. However, the manual also permits early retirement at the management’s discretion, provided the employee has served for at least 10 years.

Silence from the CBN

Despite the growing controversy, the CBN has remained tight-lipped. Attempts by Daily Trust to obtain comments from Hakama Sidi Ali, the CBN’s Director of Corporate Communications, were unsuccessful as calls and text messages went unanswered.

The House’s intervention comes amid growing concerns about Nigeria’s economic and labor market challenges. With unemployment rates already high, the planned retirement could worsen joblessness and public discontent.

Allegations of Political Motivation

Beyond procedural concerns, allegations have surfaced suggesting that the planned retirements are part of Cardoso’s broader strategy to overhaul the bank’s workforce. It is alleged that the move targets employees hired during the tenure of Emefiele, aiming to replace them with staff perceived to be loyal to Cardoso and, by extension, President Bola Tinubu’s administration.

However, observers argue that such a move could undermine the CBN’s independence, turning it into a politically influenced institution rather than an autonomous regulatory body.

The investigation by the House of Representatives is expected to shed light on the opaque nature of the planned restructuring, ensuring that the rights of affected employees are protected and that public trust in the CBN is restored.