The Nigerian government is set to replace Remita, the longstanding gateway for its Treasury Single Account (TSA), with a new system known as the Treasury Management & Revenue Assurance System (TMRAS). This shift marks the end of a 13-year partnership with SystemSpecs, the owners of Remita, as the government seeks to enhance transparency and efficiency in revenue collection and payment processing.
TMRAS is expected to go live today, with Remita continuing to operate alongside it until May 4, 2025, before being completely phased out. The new system will centralize payment collections across ministries, departments, and agencies (MDAs) and process payments from Special Accounts outside the regular budget.
According to reports, the transition to TMRAS will happen in two phases. The first phase will focus on handling naira-based payments and collections, allowing the Office of the Accountant General of the Federation to generate bank statements, track balances, and automate tax deductions for payments made to vendors and contractors. Taxes such as Value Added Tax (VAT), Withholding Tax, and Stamp Duty will be automatically deducted and remitted.
The second phase, set to begin on June 1, 2025, will introduce foreign exchange transactions into the system. Additionally, TMRAS will integrate with MDA Enterprise Resource Planning (ERP) systems, further streamlining government operations and ensuring compliance with financial regulations.
The government believes that this new system will enhance accountability by automating the deduction and remittance of internally generated revenue from federal agencies. However, the shift means that only payment service providers (PSSPs) approved by the Accountant General will be authorized to collect revenue on behalf of the government.
A government memo advises MDAs to direct all PSSPs currently handling collections to integrate with the Central Bank of Nigeria’s (CBN) official payment gateway. The process of profiling and certifying PSSPs for the new platform is already underway.
For Remita, this development raises concerns about its long-term position in Nigeria’s financial ecosystem. The platform previously faced scrutiny in 2016, when lawmakers pushed for its contract to be terminated, though it managed to retain its role. While SystemSpecs has diversified its operations beyond government contracts, it continues to face stiff competition from emerging fintech players like Paystack and Flutterwave.
With this transition, the Nigerian government is taking a bold step toward modernizing its financial management system, but the full impact on Remita and the broader fintech sector remains to be seen.
