Nigeria has launched a Treasury Management System with the goal of streamlining government revenue collection, enforcing budget control, and automating tax remittances. The initiative arises from directives by the President and the Honourable Minister of Finance to improve overall financial oversight. The system will be deployed in two phases starting in March 2025.
The Nigerian government has introduced a new Treasury Management System aimed at enhancing revenue efficiency and improving budget oversight across its ministries and agencies. This initiative stems from directives by the President and the Honourable Minister of Finance, aligning with the goal of effective Treasury Management and Revenue Assurance.
The Treasury Management and Revenue Assurance System will streamline the collection and management of revenue for all Federal Government Ministries, Departments, and Agencies (MDAs), as well as Federal Government-Owned Enterprises (FGOEs). This system is designed to facilitate improved coordination of revenue collections, covering donor funds, trust funds, social security funds, and other special funds associated with the government.
The implementation of the Treasury Management System is set to occur in two distinct phases. Phase one, commencing on March 4, 2025, will focus on the Naira component, enabling MDAs to manage payments and collections more effectively. This phase will also allow for the automatic deduction of taxes from vendor payments, such as Value Added Tax (VAT), Withholding Tax (WHT), and Stamp Duty.
Phase two, anticipated to begin on June 1, 2025, will expand the system to include foreign exchange components when dealing with payments and collections. Moreover, this phase will integrate the system with MDAs’ Enterprise Resource Planning (ERP) systems and activate budget modules for MDAs not currently included in the national budget, ensuring comprehensive budget control and oversight.
The launch of the Treasury Management and Revenue Assurance System by Nigeria signifies a vital step towards enhancing financial oversight and budget efficiency within the government. By implementing this system in two phases, the Nigerian government aims to streamline revenue processes and enforce stringent budget controls, ultimately leading to more effective management of resources.
Original Source: techafricanews.com
