FG Replaces REMITA with New Revenue Collection System

The Federal Government is launching a new payment system called the Treasury Management & Revenue Assurance System (TMRAS). This system will replace REMITA, which was previously used for handling government money.

According to a memo from the Office of the Accountant General of the Federation dated February 28, 2025, this new system aims to improve how federal revenues and payments are managed across different government sectors. This includes sectors that get money from donations, trust funds, social security, and special funds.

The roll-out of TMRAS will happen in two stages. The first stage starts today and will deal with payments and collections in naira. It will allow for generating bank statements, tracking account balances, and automatically handling taxes such as VAT, Withholding Tax, and Stamp Duty on payments to vendors and contractors.

The second stage begins on June 1, 2025, and will handle transactions involving foreign currencies and connect with the financial planning systems of different Ministries, Departments, and Agencies (MDAs). It will also start a budget control feature for MDAs that are not included in the national budget.

The memo also notes that the rule requiring government agencies and parastatals to automatically send half of their internally generated revenue to the federal government will continue. The TMRAS will manage this process to ensure quick and transparent payments to the government and the MDAs.

Furthermore, all payments that are not part of the regular budget will now be handled only through TMRAS. This change aims to get rid of manual payments to increase transparency and better manage public funds.

Also, only payment service providers that are approved by the Central Bank of Nigeria (CBN) and the Accountant General’s office can collect government money. These providers must connect with the CBN’s official payment gateway for a smooth process.

To make sure the transition goes smoothly, REMITA will still be used alongside TMRAS until May 4, 2025. After that, all MDAs are expected to fully switch to the new system.

This new system is part of the government’s plan, led by Wale Edun, the Coordinating Minister of Finance and National Economy, to manage treasury operations better, ensure reliable revenue collection, and improve budget management across all government agencies and enterprises.