Framing Truth and Context: A Call for Objectivity – Remita As Case Study
Framing Truth and Context: A Call for Objectivity – Remita As Case Study
Mustapha Okino
In a society that aspires to the ideals of justice and integrity, truth must be framed not in the heat of political emotion but through the cool lens of verifiable fact. The principle of due process, a cornerstone of every democratic system, demands that all individuals and institutions be accorded the right to fair, objective scrutiny before any judgment is passed and pronouncements are made. In matters of public interest, especially those involving critical national infrastructure like the Treasury Single Account (TSA), objectivity must not be sacrificed on the altar of sentiment or sensationalism.
The recent pronouncement by the Chairman of the House Committee on Public Accounts, Hon. Bamidele Salam, that Remita, a leading financial technology company in Africa that provides payment solutions to governments, individuals and businesses, should refund a staggering N182 billion allegedly withheld from the TSA since 2015, raises profound questions, not just about the claim itself, but about the nature of discourse and investigation in our polity. This directive followed the submission of an investigative report by consulting firm Seyi Katola & Company (Chartered Accountants) during an investigative hearing in Abuja. This article aims to unravel the background, provide necessary context and stimulate qualitative discourse on the issue.
The Federal Government TSA Initiative
First introduced during the Goodluck Jonathan administration and fully implemented under President Muhammadu Buhari in 2015, the TSA was designed as a single, unified structure of government bank accounts. It was aimed at consolidating inflows from all Ministries, Departments and Agencies (MDAs) to ensure accountability and transparency in public financial management. Prior to TSA, MDAs maintained thousands of accounts across different banks, allowing for widespread leakage, mismanagement, and a lack of visibility into government revenues.
The implementation of TSA has led to the consolidation of over 17,000 bank accounts, helping Nigeria save over N3 trillion in previously inaccessible or mismanaged funds. Beyond reducing the cost of borrowing, TSA has instilled fiscal discipline and allowed the Federal Government to track its revenues and expenditures with unprecedented accuracy. The TSA stands as a laudable achievement for the nation’s public financial management and should be maintained. The indigenous technology, Remita, which has been the backbone of this crucial system, should be supported and encouraged rather than being vilified.
Remita, now operated as an independent company, was originally developed by SystemSpecs and has since evolved into a standalone financial technology service provider. It serves as the backbone technology infrastructure through which MDAs make and receive payments, connecting seamlessly with all commercial banks and over 400 microfinance institutions. Remita ensures real-time visibility and reconciliation of government accounts and was adopted after a competitive process led by the Central Bank of Nigeria (CBN).
Remita was selected as the payment gateway backbone infrastructure for the Treasury Single Account following a rigorous evaluation process conducted by the CBN, the Office of the Accountant-General of the Federation (OAGF), and with the support of World Bank consultants. During this process, the Remita platform was selected ahead of other local and foreign options as the most suitable technology to power the Federal Government’s TSA project.
According to official reports and public statements, Remita’s architecture allows the Federal Government and its agencies to effect and monitor all outflow and inflow transactions across all bank accounts. A 2016 report quoted the Accountant-General of the Federation stating that the TSA had saved over N3 trillion and was providing the government with better information on the cash resources available at any point in time. These benefits were made possible by the integrated, transparent structure of the Remita platform.
The Allegation
Following the submission of an investigative report by a consulting firm during an investigative hearing in Abuja, the House Committee on Public Accounts directed that Remita refund about N182 billion, which the lawmakers allege has been withheld from TSA proceeds since 2015. The sum, they claim, represents a combination of commissions and fees collected on TSA transactions beyond what is stated in the contract, unpaid commissions to CBN as an earning party to the services provided to government, and the non-remittance by banks to the CBN.
Judging from the screaming news headlines, one would have easily taken Remita to the cleaners if further scrutiny was given to other details which were not expected to be read by many before jumping to conclusion. It is shocking to realise that the demanded amount represents the effect of applying a self-determined penalty of 27.5% compounded interest rate over 7 years to arrive at the ridiculous amount. In short, 70% of the fees alleged to have been withheld by Remita since 2015 are due to penalties imposed by the committee.
How did we get here?
It is also worrisome that, Remita while being a CBN licensed entity as a Switch and PSSP and not a bank is being requested to refund monies held in banks that should have been transmitted to the CBN. A basic understanding of how payment gateway infrastructure works would probably have shown clearly that funds are only moved between banking institutions across secured layers which ensure such funds end up in the account of intended beneficiaries. The CBN, as the regulator, would do well to weigh in on this as well as the Office of the Accountant General who should ordinarily be the ones at the forefront of looking for missing funds. The absence of the mention of these two institutions in the entire process suggests Remita may just be the target of account or that the TSA itself is under attack as it is claimed it has spoilt business for many people over the years.
Why the rush?
According to news reports, the committee had finished its work and submitted its report on dd/mm 2025 to the House of Representatives for the consideration of the whole house. How come the consultants are just making a media-led presentation to the committee after it had concluded its work and formally submitted its report to the whole house about a month ago? Why the hurry to go ahead of the House to make public pronouncements on a report that is awaiting deliberations on the floor of the House?
It may also be of interest to know if the consultants who are expected to be familiar with processes and procedures were acting under any pressures, knowing the committee’s report had been submitted and that further deliberations could only have been at the instance of the House. On another hand, it would be no surprise if the consultant’s remuneration is tied to how much “recoveries” and “refunds” they are able to rack up on the back of humongous penalties. This may then explain the 70% penalties imposed on Remita and their readiness to be available to present their penalty-inflated findings while the House is yet to deliberate on the submitted report.
Preserving TSA Gains
The merits of one of Nigeria’s most successful public finance reforms must not be seen to be undermined by processes that seem to arrive at premeditated destinations. At a time when the country is in dire need of digital innovation, fiscal prudence and policy continuity, unguarded public pronouncements can unintendedly discredit indigenous solution like Remita and send the wrong message to local entrepreneurs and international observers alike. If indeed there are grounds to investigate any mismanagement or overreach in TSA implementation, such a process must be seen to be impartial, evidence-based and conducted with full disclosure to the public. No individual or company is above accountability.
The House of Representatives is urged to ensure that the allegations against CBN, OAGF, banks and Remita undergo the proper, transparent and exhaustive review, with a consciousness of not inflicting unnecessary damage on national institutions or indigenous enterprises. The priority must be to safeguard the integrity of our institutions and cultivate an environment where indigenous innovation can flourish, unburdened by damaging claims and procedural ambiguities.
There is a need to uphold the integrity of the TSA initiative while pursuing accountability where required. Hasty conclusions must not undo years of reform and progress. The best interests of Nigeria lie not in knee-jerk reactions but in measured, informed and principled decisions.
* Mr. Okino, Public Analyst, writes from Abuja, Nigeria
Mustapha Okino In a society that aspires to the ideals of justice and integrity, truth must be framed not in the heat of political emotion but through the cool lens
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