The Nigerian government has made a significant move in its revenue collection system, shutting down the Remita payment platform, which has powered its Treasury Single Account (TSA) for 13 years. The government will replace Remita with a new Treasury Management & Revenue Assurance System (TMRAS), a decision that is expected to have a massive impact on SystemSpecs, the fintech firm that built its business around Remita's central role in revenue collection.

The new TMRAS platform will be rolled out in two phases, with the first phase focusing on all naira payments, followed by foreign currency transactions by June. To ensure a smooth transition, Remita will run concurrently with TMRAS for two months, ending May 4, allowing ministries, departments, and agencies (MDAs) and banks to adapt gradually. The new system introduces features like real-time balance tracking and automatic tax deductions on payments, which are expected to improve revenue inflows and plug leakages in the Treasury Single Account.

All government collections will be centralized through the Central Bank's gateway, meaning banks and payment processors must be CBN-licensed and integrate with the new system. This change is expected to bring about greater transparency and accountability in the country's revenue collection process. The TMRAS platform is designed to improve financial accountability, helping the government consolidate thousands of accounts and reportedly saving about ₦132 billion yearly in bank charges and interest through TSA reforms.

Remita's replacement will deal a huge blow to SystemSpecs, its parent company. For over a decade, the Nigerian government has been its largest client, with Remita serving as the primary gateway for the Treasury Single Account (TSA) and processing trillions of naira in public funds. While the company offers payroll, payment processing, and enterprise solutions, the TSA contract has been its most lucrative revenue stream, generating billions in transaction fees annually.

Launched in 2012 by SystemSpecs, Remita became the backbone of Nigeria's TSA, processing over ₦34 trillion of government revenues between 2015 and 2022. Despite its contributions to the country's revenue collection system, Remita's use by the government was not without controversy. In 2015, senators questioned a 1% transaction fee (about ₦25 billion) allegedly paid to the platform's operators. In March 2024, lawmakers probed possible revenue leakages and an unapproved ₦15 billion paid to Remita in fees from 2016 to 2018. These concerns over transparency and accountability likely influenced the government's decision to replace the platform.

The introduction of TMRAS marks a significant shift in Nigeria's revenue collection system, one that is expected to bring about greater efficiency, transparency, and accountability. As the country continues to evolve its financial systems, the impact of this change will be closely watched by fintech companies, policymakers, and stakeholders alike.