Nigeria Shakes Up Treasury Payments with New System

The Nigerian government is making a major shift in its financial operations by replacing the long-standing Remita platform with a new payment system, the Treasury Management & Revenue Assurance System (TMRAS). This move aims to enhance efficiency and accountability in the collection and disbursement of government funds.

A New Era for Government Transactions

After 13 years as the central payment gateway for the Treasury Single Account (TSA), Remita will soon be phased out. The transition officially begins today, but the system will continue to run alongside TMRAS until May 4, 2025. Thereafter, all payments—including those outside the national budget, such as Special Accounts—will be processed exclusively through the new platform.

TMRAS is set to roll out in two phases. The first phase, focusing on naira transactions, will enable the Office of the Accountant General of the Federation to generate bank statements, track balances, and automate the deduction and remittance of taxes like VAT, Withholding Tax, and Stamp Duty for vendor and contractor payments. The second phase, starting June 1, 2025, will extend to foreign currency transactions while integrating with the Enterprise Resource Planning (ERP) systems of various ministries, departments, and agencies (MDAs) to improve operational efficiency.

Impact on Payment Companies

The introduction of TMRAS is expected to have a significant impact on the financial ecosystem, particularly payment service providers. Only payment firms approved by the Accountant General will be permitted to collect government revenue. A government memo advises MDAs to ensure that their Payment Solution Service Providers (PSSPs) align with the Central Bank of Nigeria’s (CBN) official payment gateway for seamless financial coordination.

The document states: “MDAs are advised to direct all PSSPs currently collecting on their behalf to connect with the official CBN payment gateway, for seamless coordination of government collections on the platform. The process of profiling PSSPs shall begin immediately, and certified PSSPs will be listed on the TMRAS for collections.”

This change could spell trouble for Remita, despite its long-standing role in Nigeria’s financial infrastructure. While it has weathered past challenges, including a 2016 Senate investigation into its contract, the company may struggle to maintain its foothold. Although it has diversified its operations beyond government contracts, it faces stiff competition from fintech giants like Paystack and Flutterwave. The long-term implications of this policy shift on Remita remain uncertain.