TSA: Reps go tough on TSA regulations, summon CBN, Accountant General

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House of Representatives Committee on Public Accounts (PAC) is moving to enforce obedience to TSA regulation.

Consequently, the lawmakers resolved ti sanction Ministries, Departments and Agencies (MDAs) that flout the TSA regulations.

As a first step, the Committee summoned the Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, Finance Minister Wale Edun, and representatives from the Accountant General’s office to appear before the House on February 20th, 2024.

This followed a hearing presided over by Hon. Bamidele Salam, convened to probe instances of alleged leakages and non-remittance of TSA revenue generated through Remita.

It originated from a motion co-sponsored by lawmakers Hon. Jeremiah Umaru and Jafaru Gambo, both members of the All Progressives Congress.

The Committee Chairman, Hon. Salam, underscored that “the investigation is not a witch-hunt targeting any company but rather a crucial step towards transparency and ensuring accountability for the Federation’s revenue.”

During the hearing, Mr ‘Deremi Atanda, Managing Director of Remita Payment Service Limited (RPSL), clarified that Remita does not manage government revenue.

Rather, it serves as an indigenous software and payment gateway, channelling collected funds directly into CBN accounts. He emphasised that revenue losses cannot occur within the Remita platform itself, with the technology being designed to provide real-time data on the banking statements of all the MDAs using the platform.

Atanda, however, dismissed the allegation of a 1% fee charged by the Federal Government and Remita for the processing of TSA transactions.

Atanda, who referred to the CBN circulars of November 2018 and December 2020, said the applicable fee for processing TSA payments was N150 with applicable VAT irrespective of the amount being paid to any Federal Government MDA account at the central bank.

He denied charging unauthorised fees beyond the N150 per transaction, adding, Remita offers free value-added services to the Federal Government despite foreign hosting costs.

He explained that the Banks receive 33%, CBN, 11%, NIBSS takes 10.5%, and oAGF gets a 2.5% share, while Remita and other stakeholders, including card issuers, collectively share the remaining 43%.

Billy Osawaru, who represents Orhionmwon/Uhunmwonde Federal Constituency of Edo State, initiated the motion to summon the CBN governor, AGF and Minister of Finance lamented over the lack of documents at the investigative public hearing.

He was particularly troubled by the Central Bank’s failure to produce documents, contrasting sharply with Remita, which provided a contract signed by the CBN.

The Chairman, House Committee on Public Accounts, Hon. Bamidele Salam, underscored the need for physical appearance of the Minister of Finance and Coordinating Minister of the Economy, CBN Governor and Accountant General of the Federation before the Committee, on Tuesday, 20th February, 2024.