The Nigerian government has introduced a new payment platform, the Treasury Management & Revenue Assurance System (TMRAS), to replace Remita as the primary system for processing payments across ministries, departments, and agencies (MDAs). This transition is aimed at improving transparency, automating tax deductions, and ensuring seamless financial transactions within the government. Although TMRAS is now live, Remita will continue operating alongside it until May 4, 2025, after which only payment service providers approved by the Office of the Accountant General will be authorized to collect government revenue.
TMRAS will be implemented in two phases. The first phase will focus on naira payments and collections, allowing the government to track balances in real-time and automatically deduct and remit taxes from vendor and contractor payments. The second phase, set to begin in June, will handle foreign exchange transactions and integrate with financial management systems used by government agencies. By centralizing payments and automating revenue collection, the government expects to enhance accountability and efficiency.
The move signals a major shift in Nigeria’s digital payment landscape, with Remita facing potential risks despite being a dominant player in government transactions for over a decade. While the company has diversified its operations outside public sector contracts, it faces stiff competition from newer fintech companies like Paystack and Flutterwave. The long-term impact of this transition on Remita’s business remains uncertain.
Read the full news here: Techpoint Africa