Nigeria Ends 13-Year Partnership with Remita, Introduces New Payment System
Nigeria’s government has ended its 13-year relationship with Remita, transitioning to the Treasury Management and Revenue Assurance System. This change will be executed in phases, starting with Naira payments. Users will be seamlessly migrated to the new system, which aims to improve transparency and efficiency in revenue collection, but will represent a significant loss for Remita’s parent company, System Specs.
The Federal Government of Nigeria has officially concluded its 13-year partnership with Remita, a prominent payment solutions provider responsible for managing government financial transactions. This decision significantly impacts System Specs, Remita’s parent company, which, in 2016, processed approximately $30 billion annually from diverse sectors, including merchants and various levels of government.
The government will introduce a new system known as the Treasury Management and Revenue Assurance System, which commenced operations today. A memo from Oluwatoyin Medin, the Accountant General of the Federation, indicated a phased transition, beginning with immediate changes to payment and collection functionalities for the Naira component, followed by an evolution in June 2025 that will integrate foreign exchange components.
Users currently operating on Remita will experience a seamless transition to the new system, retaining their usernames and corporate IDs. The memo stresses that automated notifications will guide users through the system, including initial logins which will require password changes for security.
To enhance the integrity of financial transactions, the government has mandated that only Central Bank of Nigeria-licensed Payment Solution Service Providers are permitted to collect revenues on behalf of governmental bodies. Contractors looking to engage with federal ministries will also need to register with the Federal Inland Revenue Service to navigate the new system. Furthermore, this new framework aims to automate the deduction and remittance of revenues generated internally by federal agencies.
The termination of the partnership with Remita is a significant setback for System Specs, which previously managed $6 billion in monthly transactions through its platform, including substantial government-related activities. Despite the company’s resilience, illustrated by its survival through a Senate investigation in 2016, the loss of this crucial contract is likely to have pronounced effects on its financial stability.
In conclusion, the Nigerian government’s termination of its long-standing partnership with Remita marks a pivotal shift in its payment processing system. The introduction of the Treasury Management and Revenue Assurance System represents both a challenge and an opportunity for the government and relevant stakeholders. As System Specs navigates the ramifications of losing a major contract, the government underscores the importance of secure and efficient payment solutions in enhancing transparency and operational effectiveness.
Original Source: thecondia.com
