The Federal Government is set to transition public service payments from the existing Remita platform to a new system, the Treasury Management and Revenue Assurance System (TMRAS). This move is part of President Bola Tinubu’s efforts to create a more efficient revenue mobilization system, reduce leakages, and boost government income.
The shift follows an inquiry by the National Assembly into Remita’s operations over alleged non-remittance of generated revenue. Though the findings have not been made public, there are growing indications that the government has sufficient reasons to introduce a new platform.
Not a Replacement, But a Complement
Despite speculation that the government is phasing out Remita, the Office of the Accountant General of the Federation (OAGF) clarified that TMRAS will not replace Remita but will work alongside it. The new platform will integrate Remita with other Central Bank of Nigeria (CBN)-approved Payment Solution Service Providers (PSSPs) to diversify and improve revenue collection.
According to the OAGF, the introduction of TMRAS aligns with directives from the President and the Minister of Finance, Wale Edun, aiming to improve treasury revenue assurance and budget performance across all Ministries, Departments, and Agencies (MDAs). The platform will facilitate efficient coordination, enhance transparency, and ensure timely remittance of funds.
Concerns and Stakeholder Reactions
The sudden introduction of TMRAS has raised concerns among stakeholders, who worry that the transition may be poorly executed due to inadequate planning. Experts argue that payment platforms alone cannot address issues of transparency and accountability in government revenue management.
Professor Godwin Oyedokun of Lead City University emphasized that a platform is only as effective as the data inputted into it. “Even the most sophisticated system is useless if the data is flawed. Real transparency requires strong internal controls, independent oversight, and enforcement of financial regulations,” he said.
Similarly, Eze Onyekpere, Lead Director of the Centre for Social Justice, questioned whether switching platforms is the best approach. He suggested that addressing the weaknesses of the existing system might have been a more cost-effective solution.
Additionally, cybersecurity experts warn that a centralized system like TMRAS could become a target for cybercriminals, increasing the risk of data breaches. They recommend implementing strong security measures such as two-factor authentication, encryption, and risk-based authentication for third-party access.
The Government’s Vision for TMRAS
The government insists that TMRAS will revolutionize revenue collection across MDAs by streamlining payment processes, enhancing accountability, and automatically deducting taxes like VAT and withholding tax from contractor payments. The platform is also expected to eliminate manual mandates, ensuring prompt remittance of funds.
While the government is optimistic about TMRAS improving revenue management, experts caution that addressing systemic issues like corruption, weak oversight, and lack of political will is crucial for lasting financial transparency and accountability.
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