The Nigerian government has terminated its 13-year partnership with Remita, transitioning to a new Treasury Management and Revenue Assurance System. The change will occur in phases, with existing users granted access to the new system. Only approved CBN-licensed providers will be allowed to collect revenue for government agencies moving forward.
The Federal Government of Nigeria has officially ended its partnership with Remita, a payment solutions provider that has facilitated government financial transactions over the span of 13 years. This decision represents a significant setback for System Specs, the parent company of Remita, which in 2016 managed $30 billion in annual transactions across various sectors, including merchants and government agencies.
As a replacement, the new Treasury Management and Revenue Assurance System was launched and will be implemented in phases. A memo signed by Oluwatoyin Medin, the Accountant General of the Federation, detailed that the first phase commenced immediately and focused on Naira payments and tax remittances while the second phase is expected to start on June 1, 2025, covering foreign exchange components.
To ensure a seamless transition, Remita will be phased out gradually to avoid disruption. Current users will have automatic access to the new system with their existing credentials, simplifying the migration process. Upon creation of a user profile, an automated email will provide a username and one-time password, which must be changed at the first login.
The government emphasized that only Central Bank of Nigeria (CBN) licensed Payment Solution Service Providers (PSSPs), sanctioned by the Accountant General, will be authorized to collect revenues for governmental ministries and agencies. Furthermore, federal contractors must register with the Federal Inland Revenue Service (FIRS) to utilize the new system, which aims to enhance revenue transparency through automated deductions of internally generated revenue.
The cessation of the partnership with Remita marks a significant change in how the Nigerian government handles financial transactions, moving towards a new system that aims to enhance efficiency and transparency. This transition is particularly critical for System Specs, which relied heavily on its relationship with the government. The phased approach to implementation and clear guidelines for revenue collection illustrate the government’s intent to facilitate a smooth transition while ensuring proper compliance in future transactions.
Original Source: thecondia.com
