Country systems
Nigeria: the Treasury Single Account and Remita e-collection
Short answer
- Account holder
- Central Bank of Nigeria 1
- Coordinating office
- Office of the Accountant-General of the Federation (OAGF) 1
- Approval
- Circular dated 7 August 2015 citing sections 80 and 162 of the Constitution 2
- Collection platform
- Remita, described by its managing director as software and a payment gateway 2
- Status
- Live. Parliamentary hearing held February 2024 2
- Fee on record
- A claimed 1 percent fee was disputed in February 2024. Remita's managing director said N150 including VAT 2
What the TSA and e-collection scheme are
The OAGF describes an e-Collection Scheme introduced to deepen the Treasury Single Account. Its aim is to support the prompt collection of Federal Government receipts 1. Payments are credited to the Federal Government account or to a designated agency account at the CBN 1.
The OAGF page told ministries, departments and agencies (MDAs) to close their existing collection accounts on or before 31 March 2015. They had to send evidence of balance transfers and closures no later than 13 April 2015 1.
Legal basis and start date
NAN reported on 15 February 2024 that in August 2015 the then President approved the TSA for e-collection of receipts for all federal MDAs. The approval was set out in circular HCSF/428/S.1/120, Re-Introduction of Treasury Single Account, dated 7 August 2015, signed by the then Head of the Civil Service, Danladi I. Kifasi. It cites sections 80 and 162 of the Constitution, as reported by Femi Ogunshola of the News Agency of Nigeria (NAN) 2.
How a payer uses it and how money reaches the treasury
Payments go through deposit money banks and electronic channels using the CBN Payment Gateway. They then reach the Federal Government or MDA account held at the CBN 1. MDAs must complete registration, user enrolment and revenue forms to get direct gateway access. The forms go to the Settlement Centre in the OAGF 1.
At the February 2024 hearing, Remita managing director Deremi Atanda said Remita does not manage government revenue and acts as a software and payment gateway, as reported by NAN 2.
Fees and the commission dispute
At the February 2024 hearing Remita's managing director disputed a claimed 1 percent processing fee. He said the applicable fee was N150 including VAT, under CBN circulars dated November 2018 and December 2020, as reported by NAN on 15 February 2024 2. The NAN report does not say who made the 1 percent claim. No CBN fee schedule or circular was opened for this article.
Parliamentary and audit findings
In February 2024 the House of Representatives Public Accounts Committee, chaired by Rep. Bamidele Salam, probed alleged leakages and non-remittance of TSA revenue generated through Remita. It resolved to sanction MDAs that violated the TSA rules 2. It summoned the CBN Governor, the Minister of Finance and representatives of the OAGF to appear on 20 February 2024. Members raised concern about a lack of documents, especially from the CBN. Remita provided a signed contract 2. The chairman said the probe was not targeting any specific company 2.
The Auditor-General's report on MDAs for the year ended 31 December 2019, signed on 15 September 2021, found that the Nigeria Customs Service did not remit N125 billion of internally generated revenue to the Consolidated Revenue Account. About 14 other bodies did not remit N1.28 billion. Twelve MDAs did not remit VAT and withholding tax of N5.83 billion, as reported by Olugbenga Adanikin of The ICIR 3. No response from Customs was reported 3.
Common questions
When did Nigeria start the Treasury Single Account?
NAN reported that the then President approved the TSA in August 2015 through a circular dated 7 August 2015 2. The OAGF set account closure deadlines in March and April 2015 for the e-collection scheme 1.
Where is TSA money held?
In Federal Government and MDA accounts at the Central Bank of Nigeria 1.
What is Remita's role in the TSA?
Its managing director told parliament in 2024 that Remita acts as software and a payment gateway and does not manage government revenue 2.
How much does Remita charge on TSA payments?
At a February 2024 hearing Remita's managing director disputed a claimed 1 percent fee and said the applicable fee was N150 including VAT under CBN circulars 2.
Has parliament investigated the TSA?
Yes. The House Public Accounts Committee held hearings in February 2024 on alleged non-remittance of TSA revenue through Remita 2.
Rules and charges change. Check the official source linked on this page before you pay or travel. Spotted an error? Email hello@revenuecollectionexplained.org.
Sources
- Office of the Accountant-General of the Federation: Treasury Single Account, TSA E-Collection (undated, 2015 deadlines)
- News Agency of Nigeria, Femi Ogunshola: TSA, Reps to sanction MDAs over non-compliance, summon CBN, others (15 February 2024)
- The ICIR, Olugbenga Adanikin: Under Buhari's Watch: Customs failed to remit N125bn into national treasury in 2019, Audit report (8 January 2022)
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