The sudden change of the payment platform by the federal government is causing anxiety among stakeholders.
From Remita to the Treasury Management and Revenue Assurance System (TMRAS), experts observed that the explanation offered so far for the sudden change of platform leaves much to be desired, reports The Guardian.
Experts are of the opinion that the federal government needs to provide more clarifications on the real reason behind the sudden change.
They insisted that the government may implement the new platform haphazardly due to a lack of adequate planning.
Experts say that while payment platforms play a role in financial management, it is unlikely that the core problems of transparency and accountability in government revenue management solely reside within the platform itself.
In a related development, President Bola Tinubu has appointed Babatunde Ogunjimi as the new Accountant General of the Federation.
Ogunjimi, whose appointment will take effect from March 7, 2025, will take over from Dr. Oluwatoyin Madein, who is retiring on the same day, having attained the retirement age of 60 years.
Yesterday, the federal government announced that it has ended its romance with Remita as its payment gateway of 13 years with the introduction of TMRAS.
The government said the new payment platform is designed to revolutionise revenue collection across federal ministries and agencies and will make revenue management in the country more efficient and transparent.
It said TMRAS is tailored to enhance revenue collection by streamlining payment processes within government departments, adding that TMRAS is anticipated to enhance both transparency and accountability in Nigeria’s revenue management.
The new platform, according to the government, will automatically deduct and remit taxes linked to vendor and contractor payments, like Value Added Tax (VAT) and Withholding Tax.
It noted that by removing the need for manual mandates, TMRAS will better manage public funds, ensuring prompt remittance to the Federal Government’s account as well as the agencies involved.
The government noted that the launch of TMRAS is part of Nigeria’s larger agenda to digitise public services and improve government operations.
Remita, developed by an indigenous tech company, SystemSpecs, has served as the gateway for the Treasury Single Account (TSA) of the Nigerian government since 2012. This has enabled the government to keep track of all its revenues across all its MDAs.
However, in November 2023, the House Committee on Public Accounts was mandated to investigate Remita over allegations of revenue leakages and non-remittance of government revenues generated through its platform into the TSA. The outcome of that investigation has not been made public.
Experts say a payment platform is just a tool whose effectiveness depends on how it’s used and the underlying processes it supports. “Simply changing platforms doesn’t guarantee transparency if the processes remain opaque or if there’s a lack of enforcement,” they said.
They added that transparency and accountability are often hampered by systemic issues such as weak internal controls, lack of independent oversight, corruption and fraud, inadequate record-keeping, as well as a lack of political will to enforce regulations.
Professor Godwin Oyedokun of Lead City University, Ibadan, said the accuracy and reliability of the data entered into any payment platform are crucial. “Even the most sophisticated system is useless if the data is flawed,” he said. “Ultimately, people are responsible for managing public funds. No platform can eliminate the potential for human error or intentional wrongdoing.”
He said the only thing a new platform could address is improved data aggregation and reporting capabilities, which then make it easier to track revenue flows and identify discrepancies.
He noted that a more secure platform could help prevent unauthorised access and fraud.
Other features, he said, could be real-time monitoring to enable faster detection of irregularities, while increased automation could reduce the likelihood of human error.
He said that to truly achieve transparency and accountability, it is important to implement robust internal controls to prevent fraud and errors, conduct regular independent audits to verify the accuracy of financial records, make financial information readily available to the public, and hold individuals and organisations accountable for violations of financial regulations, among others.
Prof. Oyedokun said that while the TMRAS could be a positive step, it’s just one piece of the puzzle.
“Sustainable improvements in transparency and accountability require a comprehensive approach that addresses the underlying systemic issues,” he said.
Also reacting, Lead Director, Centre for Social Justice (CSJ), Eze Onyekpere, said changing the revenue or payment platform will be more expensive and may not necessarily solve all the challenges.
He said that filling the gaps in the existing system may have been a better option. “Nigeria’s challenge is about concrete development challenges and not simply a focus on firms and platforms,” he said.
While TMRAS comes with high expectations, a tech expert who wishes not to be named warns that its centralised system could be an attractive target for cybercriminals, posing risks like data breaches and unauthorised access.
To counter these threats, they suggest that strong security measures, such as two-factor authentication and risk-based authentication for third-party access, should be embedded.
“Encryption and secure storage of sensitive documents will also be crucial to safeguard against unauthorised access,” he suggested.
The new Accountant General, whose appointment was approved today by the president, emerged after a rigorous selection process.
Ogunjimi was first named as Madein’s successor last December, but following some policy reversals, the appointment was withdrawn to allow Madein to serve out her term.
A selection committee later chose him through a competitive process involving Directors of Accounts in the Federal Civil Service.
The committee conducted the process through three stages: a written assessment, an ICT proficiency test, and oral interviews.
The selection process underscores President Tinubu’s commitment to promoting transparency, excellence, and competence in key public service positions.
Ogunjimi graduated from the University of Nigeria, Nsukka, in 1990 with a Bachelor of Science in Accountancy. He also obtained a Master’s in Accounting and Finance from the University of Lagos.
He is a fellow of the Institute of Chartered Accountants of Nigeria and the Chartered Institute of Taxation of Nigeria.
President Tinubu congratulated Ogunjimi on his appointment and urged him to discharge his duties in the service of Nigeria with integrity, professionalism, and dedication to Nigeria’s service.
