Nigeria Launches Treasury Management System to Enhance Revenue and Budget Efficiency
Nigeria has launched a Treasury Management System to improve revenue collection, enforce budget controls, and automate tax processes. The system, developed by the Office of Accountant-General, will be implemented in two phases, starting March 4, 2025, facilitating enhanced financial oversight across government agencies.
Nigeria has introduced a new Treasury Management System aimed at enhancing government revenue, improving budget control, and automating tax remittances. This initiative is in accordance with directives from the President and the Honourable Minister of Finance, emphasizing effective Treasury Management and revenue assurance across various government departments and agencies, including Federal Government-Owned Enterprises.
The Treasury Management and Revenue Assurance System is specifically designed to manage and streamline revenue collections and payments for all Ministries, Departments and Agencies (MDAs). This includes those receiving donor, trust, social security, and other special funds from the Federal Government. The official launch is scheduled for March 4, 2025, and will be executed in two phases.
Phase one will address payments and collections in Nigerian Naira, allowing the Office of Accountant-General of the Federation (OAGF) and MDAs to generate bank statements. Additionally, it will enable automatic deductions and tax remittances linked to vendor payments, including Value Added Tax (VAT), Withholding Tax (WHT), and Stamp Duty. Phase two is projected to commence on June 1, 2025, focusing on foreign exchange components and integration with MDAs’ Enterprise Resource Planning (ERP) systems, while also implementing a budget module for those not included in the national budget.
The introduction of the Treasury Management System represents a strategic move by Nigeria to enhance financial management across government entities. By automating revenue collection and enforcing budget controls, the system aims to ensure greater efficiency and transparency. The phased approach to implementation is expected to facilitate a smoother transition into more effective treasury management practices within the Nigerian government.
Original Source: techafricanews.com
