Nigeria Ends 13-Year Remita Partnership for Treasury Single Account

Nigeria officially ends its 13-year partnership with Remita, the payment platform that has been the backbone of its Treasury Single Account (TSA) system since 2012. The government has introduced a new system called the Treasury Management & Revenue Assurance System (TMRAS) to replace Remita, signaling a major shift in how the country manages its revenue collection and payments.

The new TMRAS platform, which went live today, March 4, 2025, is designed to streamline revenue collection and improve transparency across federal ministries, departments, and agencies (MDAs). For a smooth transition, Remita will continue to operate alongside TMRAS until May 4, 2025. After this period, all government transactions will be processed exclusively through TMRAS.

The rollout of TMRAS will occur in two phases. The first phase focuses on naira transactions and includes features such as automatic tax deductions on vendor payments and real-time tracking of government balances. The second phase, set to begin on June 1, 2025, will handle foreign exchange transactions and integrate with the financial systems of MDAs. This integration aims to automate processes like generating bank statements and enforcing budgetary controls.

The decision to end the Nigeria and Remita partnership stems from the government’s desire to address inefficiencies in the current system. While Remita has facilitated significant improvements in revenue collection over the years, audits revealed gaps in its ability to fully capture and monitor government revenues. With TMRAS, the government hopes to eliminate manual processes, reduce corruption risks, and ensure that every kobo due is accounted for.

TMRAS also introduces stricter rules for payment service providers (PSSPs). Only companies approved by the Office of the Accountant General of the Federation (OAGF) will be allowed to collect revenue on behalf of MDAs. This move is expected to enhance coordination and accountability within the payment ecosystem.

The new system will also enforce compliance with tax regulations. All contractors must register with the Federal Inland Revenue Service (FIRS) before receiving payments. Taxes such as Value Added Tax (VAT), Withholding Tax (WHT), and Stamp Duty will be automatically deducted during transactions.

Although this transition marks a significant step forward for Nigeria’s financial management, it poses challenges for Remita. The company has diversified its operations beyond government contracts but continues to face stiff competition from newer players like Paystack and Flutterwave. The long-term impact of losing its TSA contract remains uncertain for Remita’s business prospects.

The Nigerian government has assured stakeholders that adequate training and support will be provided during this transition. Officials emphasize that TMRAS represents a leap toward greater fiscal sustainability and economic growth by leveraging advanced technologies like artificial intelligence and blockchain.

As Nigeria ends its 13-year Remita partnership, many see this as a bold move toward modernizing public financial management. Whether TMRAS can deliver on its promises of transparency and efficiency remains to be seen, but expectations are high for this new era in revenue collection.

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