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The Federal Government appears to be moving forward with plans to shift payment processing for public services from Remita to a new platform called the Treasury Management and Revenue Assurance System (TMRAS).
TMRAS is being viewed as a component of President Bola Tinubu's initiative to create a more effective revenue mobilization system to reduce waste in public resources and enhance revenue generation.
This abrupt transition comes more than a year after the National Assembly began investigating Remita due to allegations concerning the non-remittance of revenues generated, among other issues.
While the investigation's results have not been disclosed, there are suggestions that the government may have valid reasons for seeking an alternative.
Although Remita has improved the revenue collection and tracking processes since 2012, it has faced criticism over time due to operational issues, with some users labeling it as subpar. A transition, however, may not resolve the fundamental moral issues that lead to ongoing revenue leakages within collection agencies and systemic inflexibility.
Nevertheless, the government has stated that the new platform is not meant to replace Remita, but rather to complement it, enhancing revenue collection by ministries, departments, and agencies (MDAs).
This development has alarmed stakeholders and increased anxiety within the system, with experts arguing that the reasons provided for the rapid switch of platforms are insufficient.
They believe that the Federal Government should offer greater transparency regarding the true motives behind this swift change, fearing that the implementation of the new platform may be careless due to a lack of proper planning.
While acknowledging that payment platforms are instrumental in financial management, they contend that the root issues of transparency and accountability in governmental revenue management are unlikely to be found solely within the platform itself.
A statement from the Office of the Accountant General of the Federation clarified that Remita is not being dismissed as the Central Bank of Nigeria (CBN) approved payment gateway, but will be integrated into the TMRAS alongside other eligible Payment Solution Service Providers (PSSPs) to improve revenue collection and remittances through liberalization.
According to the Office, the TMRAS policy was crafted in accordance with directives from the President and the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, to ensure effective treasury revenue assurance and enhanced budgeting performance of all MDAs and government-owned enterprises (GOEs).
The OAGF stated, “The TMRAS is intended to coordinate, streamline, and manage the Federal Government's revenue collections and payments across all Ministries, Departments, and Agencies (MDAs).
“It aims to liberalize the government revenue payment processes, improve revenue collections, and facilitate timely and efficient analysis of transaction-related information.”
Amid speculation regarding the termination of Remita's 13-year contract as the chosen payment gateway, the OAGF clarified that Remita remains one of the secure channels for revenue payments.
“The TMRAS will facilitate connections with other secure payment platforms, allowing all CBN licensed payment service providers to operate,” he emphasized.
This was meant to reassure revenue payers and the public. “Remita will continue as the sole approved payment gateway for Federal Government payments and revenue collection for at least the next two months, while the government works to take over the management of the front-end payment infrastructure and widen the collection system to include other CBN accredited Payment Solution Services Providers (PSSPs),” he added.
The government has asserted that the new payment platform is designed to transform revenue collection across MDAs and make revenue management in the country more efficient and transparent.
According to officials, TMRAS is specifically designed to improve revenue collection by streamlining payment processes within governmental departments and is expected to enhance transparency and accountability in Nigeria's revenue management.
The new platform will automatically deduct and remit taxes associated with vendor and contractor payments, including value-added tax (VAT) and withholding tax.
It has been noted that by eliminating the need for manual approvals, TMRAS will better manage public funds, ensuring that there are prompt remittances to the Federal Government's accounts and the agencies involved.
The government highlighted that the launch of TMRAS is part of Nigeria's broader agenda to digitize public services and improve governmental operations. Since 2012, Remita, created by the local tech firm SystemSpecs, has served as the gateway for the Nigerian government's Treasury Single Account (TSA), enabling effective revenue tracking across all its MDAs.
