House of Reps told no ‘1% transaction fees’ on TSA, summons Edu, Cardoso 

Business a.m

The House of Representatives Committee on Public Accounts (PAC) has resolved to sanction ministries, departments and agencies (MDAs) that flout the TSA regulations.

The committee has also 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 in its bid to uphold transparency and accountability.

This development comes in the wake of a hearing Wednesday presided over by Bamidele Salam. The session was convened to probe instances of alleged leakages and non-remittance of TSA revenue generated through Remita, originating from a motion co-sponsored by lawmakers Jeremiah Umaru and Jafaru Gambo, both members of the All Progressives Congress.

During the hearing, ‘Deremi Atanda, managing director of Remita Payment Service Limited (RPSL), debunked the allegation of a  one percent fee charged by the federal government and Remita for the processing of TSA transactions.

Referencing the CBN circulars of November 2018 and December 2020, he confirmed that 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 CBN.

Atanda further clarified that Remita does not manage government revenue. Instead, 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.

Denying unauthorised fees beyond the N150 per transaction, Atanda affirmed Remita offers free value-added services to the federal government despite foreign hosting costs. He then clarified that the banks receive 33 percent, CBN, 11 percent,  NIBSS takes 10.5 percent, and oAGF gets a 2.5 percent share, while Remita and other stakeholders, including card issuers, collectively share the remaining 43 percent.

Billy Osawaru, representing Orhionmwon/Uhunmwonde federal constituency of Edo State, who initiated the motion to summon the CBN governor and AGF and minister of finance lamented 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 committee chairman, 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.”

While ruling, Clchairman, House Committee on Public Accounts, 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.