Does Nigeria need a new platform for revenue generation?

Nigeria’s federal government is set to transition from the widely used Remita platform to the Treasury Management and Revenue Assurance System (TMRAS). But is this shift necessary, and what are the potential implications? Reports said the federal government would unveil a new platform for revenue generation—the Treasury Management and Revenue Assurance System (TMRAS), to replace […]

Nigeria’s federal government is set to transition from the widely used Remita platform to the Treasury Management and Revenue Assurance System (TMRAS). But is this shift necessary, and what are the potential implications?

Reports said the federal government would unveil a new platform for revenue generation—the Treasury Management and Revenue Assurance System (TMRAS), to replace the Remita platform, which is owned by SystemSpecs.

According to these reports, the federal government and its Ministries, Departments and Agencies (MDAs), which currently collect revenues via the Remita platform, will now transition to TMRAS using the Office of the Accountant General of the Federation (OAGF) website.

The Treasury Management & Revenue Assurance System (TMRAS) is designed to streamline and manage federal revenue collections and payments across ministries, departments, and agencies, including those benefiting from donor funds, trust funds, social security funds, and special funds.

The report also stated that TMRAS will enable the OAGF and MDAs to generate bank statements, track balances, and automatically deduct and remit taxes associated with vendor and contractor payments, including VAT, Withholding Tax, and Stamp Duty.

Additionally, the automatic deduction of 50 per cent of Internally Generated Revenue (IGR) from federal government agencies and parastatals will remain in place. And, only CBN-licensed Payment Solution Service Providers approved by the OAGF will be permitted to collect government revenue.

TMRAS will run concurrently with Remita from March 4 to May 4, 2025. After that, it will fully replace Remita.

Nigeria has been using Remita since 2012 as its gateway for the Treasury Single Account (TSA). The big questions are:

• Will TMRAS effectively replace Remita without hiccups?
• Is Remita not already providing all the functionalities that TMRAS is expected to deliver?
• As an Enterprise Resource Planning (ERP) system, does TMRAS offer comprehensive functionality, a user-friendly interface, real-time data processing, effective security, and cost-efficiency compared to Remita?

When updating a system or transitioning to a more effective and efficient payment platform, it is a commendable step- if TMRAS brings enhanced functionality and efficiency that Remita cannot provide.

However, if TMRAS is simply replacing Remita after 13 years of seamless service without clear improvements, this could be a risky and dangerous move. It may set a precedent where every new government introduces its own payment system and platforms, leading to instability and inefficiency in Nigeria’s revenue collection and management.

Is TMRAS truly a step forward, or just a politically motivated switch? Nigeria cannot afford to jeopardise its revenue generation stability for the sake of change. The government must prove that TMRAS is an upgrade, not just a replacement—otherwise, this transition may do more harm than good.

 

 Zayyad I. Muhammad resides in  Abuja, [email protected]