The director of banking services at the Central Bank of Nigeria (CBN), Hamisu Abdullahi has emphasised the merit-based selection process that led to REMITA being chosen to provide an electronic platform for facilitating payments from ministries, departments and agencies (MDAs) to beneficiary accounts across commercial banks.
Abdullahi made this statement during a session where officials from the Central Bank of Nigeria appeared before the House of Representatives Public Accounts Committee on March 28, 2024. The committee, chaired by Bamidele Salaam, was tasked with investigating allegations of revenue leakages through the REMITA platform and non-adherence to service-level agreements.
“The CBN was directed to provide an electronic platform for facilitating payments on behalf of MDAs to beneficiaries’ accounts in commercial banks,” Abdullahi explained. “Considering this directive, the CBN engaged two companies, and after a thorough evaluation, REMITA was selected based on merit and its track record of providing similar services to commercial banks.”
Former director of the Office of the Accountant General of the Federation (OAGF), Salawu Zubairu previously reported that REMITA was chosen after a rigorous evaluation process that included other candidates like the Nigerian Inter-Bank Settlement System (NIBSS). The selection process, overseen by a joint evaluation committee, assessed competitive presentations and deliberated on various factors, ultimately recognising REMITA’s superior capabilities in handling electronic payments for the Treasury Single Account (TSA).
The managing director of Remita Payment Services Limited, Mr. ‘Deremi Atanda highlighted the deficiencies of the previous system where government agencies independently managed funds and decided on remittances, a practice that has been streamlined by the TSA.
“The evolution brought about by TSA has been positive for the country. Previously manual processes have now become automated,” Atanda noted. “MDAs used to receive funds independently and decide on operating surpluses to remit, but TSA has changed that.”
The TSA initiative, designed to centralise government inflows and outflows for transparency and accountability, has been instrumental in eliminating inefficiencies and uncovering financial discrepancies. Director-general of the Bureau of Public Service Reforms (BPSR), Dr. Dasuki Arabi reported significant savings and the removal of non-existent employees from the civil service payroll due to the TSA and Integrated Payroll and Personnel Information System (IPPIS).
Atanda further explained how every transaction can be tracked and accounted for using a unique Remita Retrieval Reference (RRR) code, providing detailed information on the payer, recipient, transaction purpose and timing.
While the TSA has received praise for its role in Nigeria’s financial reform and anti-corruption efforts, challenges remain, particularly in ensuring all government revenue collections adhere to its framework. Atanda stressed the importance of consolidating all government inflows and outflows, including foreign exchange revenues, to prevent diversion and maintain economic stability.
“In light of Nigeria’s current economic challenges, it’s crucial to ensure all government revenue collections are channelled through the TSA to prevent forex diversions,” Atanda emphasised.
As Nigeria continues its economic journey, preserving and strengthening the TSA framework remains essential for sustained progress and integrity in financial management.
