Comparative Analysis of the Implementation of Electronic Money Transfer Levies in Ghana and Nigeria: Policies, Legal Frameworks, and Outcomes

This study compares the implementation of electronic transaction taxes (e-levies) in two West African countries: Ghana (Electronic Transfer Levy (E-Levy)), and Nigeria (Electronic Money Transfer Levy (EMTL)). We employ a multifaceted approach to evaluate differences and similarities in design approaches, focusing on fiscal legal frameworks, policy-making and administration, and observable outcomes, including pricing, market development (usage patterns), and tax revenue. Our findings highlight that the e-levies in Ghana and Nigeria differ due to varying political, economic, and legal dynamics associated with each country. Both countries tax electronic transfer values (amounts) above a threshold, but the nature and structure of these levies vary. Ghana applies a new specific 1 per cent tax on electronic transfers exceeding GH₵100 (US$6.82) daily. Nigeria applies a flat fee of NG₦50 (US$0.034) for transactions over NG₦10,000 (US$6.73). Ghana targets domestic electronic money transfers, featuring a broad spectrum of exemptions, while Nigeria focuses on electronic deposits and electronic money transfers, including remittances, excluding intra-bank transactions. Despite initial opposition, Ghana enacted the E-Levy to include informal economy transactions and enhance domestic resource mobilisation. Electronic transactions have surged in Ghana, while Nigeria's market faces infrastructure challenges but shows slow progress. Telecom operators dominate mobile money in Ghana; banks lead in Nigeria due to delayed telecom licensing. Insights into revenue allocation indicate differing intentions. At the same time, both e-levies contribute a maximum of 2 per cent to overall tax revenue – Ghana aims for road infrastructure, and Nigeria intends to fund social amenities, though evidence is scarce.