A Major Shift in Nigeria’s Treasury Payment System
After 13 years, Nigeria is moving on from Remita, the payment gateway that has handled government transactions since 2012. The federal government has introduced the Treasury Management & Revenue Assurance System (TMRAS) as the new system to manage all government payments and collections.
This move is a big change in how Nigeria handles its finances, and it comes with new rules for payment service providers. But what does this really mean for businesses, government agencies, and the future of digital payments in Nigeria? Let’s break it down.
What is TMRAS?
TMRAS is Nigeria’s new centralized payment system designed to:
✅ Streamline government payments across ministries, departments, and agencies (MDAs).
✅ Enhance tax deductions and remittances automatically for vendor payments (VAT, Withholding Tax, Stamp Duty).
✅ Improve transparency and accountability in government transactions.
✅ Integrate with MDA Enterprise Resource Planning (ERP) systems for better efficiency.
TMRAS will replace Remita but not immediately. Both systems will operate until May 4, 2025, after which Remita will no longer handle government transactions.
READ ALSO: AWS Embraces Naira Payments: A Big Boost for Nigerian Businesses
How Will TMRAS Work?
The rollout of TMRAS will happen in two phases:
🔹 Phase 1 (March 2025 Onward): Focuses on naira payments and collections, tracking balances, generating bank statements, and automating tax deductions for vendors and contractors.
🔹 Phase 2 (June 1, 2025): Expands to foreign exchange transactions and integrates with government ERP systems to ensure better financial control and efficiency.
This means that all payments outside the regular budget, including those from Special Accounts, will now be processed exclusively through TMRAS.
Why is Nigeria Moving Away from Remita?
Several factors likely influenced this decision:
📌 Government Control – By developing its own system, Nigeria’s government can have more direct oversight over financial transactions.
📌 Transparency & Accountability – The new system promises more automation, better tracking, and fewer manual processes, reducing financial leakages.
📌 Competition & Market Evolution – Nigeria’s fintech industry has grown significantly, with players like Paystack and Flutterwave dominating the private sector.
📌 Past Controversies – In 2016, Remita faced scrutiny when senators questioned its contract, though it managed to survive that period. This time, however, the change is happening for real.
What Does This Mean for Businesses & Payment Providers?
For Government Vendors & Contractors
- Payments will now go through TMRAS, meaning businesses must adapt to the new system to receive funds.
- Automatic tax deductions mean businesses must stay compliant with VAT, Withholding Tax, and Stamp Duty.
For Payment Service Providers (PSSPs)
- Only CBN-approved PSSPs will be allowed to collect revenue for the government.
- The profiling of PSSPs has started, and those approved will be integrated into TMRAS.
For Remita
- This change puts Remita’s government business at risk.
- The company still serves private businesses, but it lags behind competitors Paystack and Flutterwave in the wider fintech market.
- It may have to reinvent itself to stay competitive.
The Future of Digital Payments in Nigeria
This move signals a major shift in Nigeria’s digital finance landscape. By developing its own payment system, the government is taking a more independent approach to financial management.
Key Takeaways:
✅ Stronger government control over transactions
✅ Increased automation for tax remittance and compliance
✅ A more competitive fintech space
✅ Opportunities for new players in government payments
As the deadline for full implementation approaches, businesses and fintech companies must stay updated and prepare for the transition.
🚀 What do you think about this change? Will it improve Nigeria’s financial system? Let’s discuss!
