Nigeria launches a Treasury Management System to enhance revenue collection, enforce budget control, and automate tax remittances across government agencies, with full deployment scheduled for March 2025.
Nigeria has initiated the deployment of a Treasury Management System aimed at improving government revenue processes and budget efficiency. This initiative follows directives from the President and the Honourable Minister of Finance, emphasizing effective Treasury Management and Revenue Assurance in all Ministries, Departments, and Agencies (MDAs) as well as Federal Government-Owned Enterprises (FGOEs).
The Treasury Management & Revenue Assurance System will streamline the collection and payment of revenue for the Federal Government of Nigeria (FGN). It will cater to MDAs, including those receiving donor funds, social security funds, and various special funds. The rollout is scheduled for March 4, 2025, in two distinct phases.
Phase one will focus on the Naira component of payments and collections, enabling the Office of the Accountant-General of the Federation (OAGF) and MDAs to generate bank statements and manage automatic tax deductions related to vendor payments such as VAT, Withholding Tax (WHT), and Stamp Duty.
Phase two, set to begin on June 1, 2025, will expand the system to include FX components and integration with MDA ERP systems, alongside enforcing budget controls through a dedicated budget module for MDAs not included in the national budget and non-budgetary financial activities.
In conclusion, Nigeria’s introduction of the Treasury Management System represents a significant effort to enhance financial oversight, streamline revenue processes, and improve budget efficiencies across government entities. With its phased implementation, the system aims to automate tax remittances and ensure robust budget control for all MDAs and FGOs.
Original Source: techafricanews.com
