How Nigerian Government Made $276 Million From Taxing Digital Payments

Nigeria has more than doubled revenue from its electronic money transfer levy after tightening enforcement across banks and fintech platforms. The policy shift has turned everyday digital payments into one of the federal government’s fastest-growing revenue streams—and crypto withdrawals are next.

Data from the National Bureau of Statistics, compiled from Federation Account Allocation Committee (FAAC) records, show that electronic money transfer levy (EMTL) collections reached ₦392.78 billion ($276.29 million) between January and November 2025. This represents a 107% increase from the ₦189.52 billion ($133.31 million) collected during the same period in 2024.

The surge follows stricter compliance requirements for fintech companies, which now process a significant share of Nigeria’s digital payments. With enforcement expanded beyond traditional banks, the government has effectively plugged a major revenue leak.

From Fintech Enforcement to Crypto Compliance

Introduced under the Finance Act 2020 as an amendment to the Stamp Duties Act, EMTL imposes a ₦50 ($0.035) charge on electronic transfers of ₦10,000 ($7.03) and above. For several years, enforcement focused mainly on banks, even as fintechs increasingly dominated payment volumes.

Under the Nigeria Tax Act (NTA) 2025, EMTL has once again been reclassified as stamp duty. The law broadens its scope to cover chargeable electronic instruments, including digital receipts, certificates, and electronic tagging.

A major change is how the levy is applied. From 2026, the ₦50 stamp duty will be paid by the sender, reversing the previous system where recipients bore the cost of the charge.

A Growing Revenue Line

The government now expects digital transaction taxes to play a larger role in medium-term fiscal planning. Budget projections show stamp duty revenue rising to:

₦456.07 billion ($320.81 million) in 2026

₦579.82 billion ($407.86 million) in 2027

₦752.45 billion ($529.29 million) in 2028

These figures suggest that digital payments—and not oil—are quietly becoming a dependable source of public revenue.

Crypto Withdrawals Enter the Tax Net

Crypto platforms are the next target. Several exchanges, including Quidax, Palremit, and Juicyway, have informed users that stamp duty will apply to naira withdrawals starting in 2026.

In a January 15, 2025 email to customers, Quidax said a ₦50 stamp duty charge would apply to withdrawals of ₦10,000 or more, clarifying that the levy is a government tax, not a platform fee.

The move comes amid increased scrutiny of Nigeria’s crypto market. Between July 2024 and June 2025, Nigeria received an estimated $92.1 billion in crypto value, placing it among the largest crypto markets globally.

As the government aims to raise its tax-to-GDP ratio from below 10% to 18% by 2027, crypto transactions have become too large to remain outside the tax net.

How the Tax Will Work

Stamp duty remains a flat ₦50 fee on transfers above ₦10,000, paid by the sender. It will now apply to most crypto-to-naira withdrawals.

Quidax applies the charge only to withdrawals, not deposits, and does not charge a separate withdrawal fee.

Juicyway applies a ₦150 flat charge on all naira payouts, which includes the ₦50 stamp duty and a service fee. A 7.5% VAT is charged on the ₦150, bringing the total cost to ₦161.25 per withdrawal.

What It Means for Users

For some traders, the additional charge could influence how they exit crypto positions.

“Yes, it will cause a behavioural change, but Nigerians always adapt,” said Tolu Makinde, a Lagos-based crypto trader. “Even small fees matter when margins are thin.”

Others warn the levy could push activity off regulated platforms.

“This exposes traders to operating outside exchanges,” said Rume Ophi, financial analyst and convener of Decentralised Nigeria. “Crypto can be traded peer-to-peer without paying liquidation and transfer charges.”

Some market participants downplay the impact.

“There is no serious crypto user who worries about ₦50,” said Kassy Olisakwe, a blockchain engineer. “On-chain fees and volatility are far more significant.”

Platforms Feel the Pressure

To stay competitive, some platforms are absorbing the cost. Tirra (formerly Azawire), a Nigerian digital banking company integrating blockchain solutions, says it will not pass stamp duty charges to users for now.

According to CEO Emmanuel Onyo, Tirra operates on margins of about 0.5%, and absorbing the ₦50 levy wipes out nearly 68% of that margin. “Customers prefer platforms where they are not hit with extra charges,” he said.

Part of a Broader Crypto Tax Push

Stamp duty is the latest in a series of efforts to tax crypto activity in Nigeria. In July 2024, KuCoin began charging 7.5% VAT on transaction fees. Under the Nigeria Tax Act 2025, crypto profits are now subject to personal income tax, while non-compliant virtual asset service providers face fines starting at ₦10 million.

While Nigeria’s new tax framework is its most comprehensive yet, questions remain over how much friction users will tolerate—and how effectively regulators can enforce compliance in an increasingly decentralised financial system.