E-Collection is electronic collection of government revenue. Therefore, E-Collection through Treasury Single Account received new development since inception.
However, some of the improvement to e-collection are in line with Central Bank of Nigeria (CBN) circular of 10th December 2020.
New Development of E-Collection/TSA implementation in Nigeria
1. New TSA cost of E-Collections for payer and Ministries, Department and Agencies (MDAs). The charges are grouped into two.
(A). Transaction charges borne by the payer.
i) If the payment is received through Point of Sales (POS), it will attract N150 plus 0.50 per cent of the amount being paid subject to a maximum of N1, 000 per transaction.
ii). If payment is received through other channeled, it attracts N150 exclusive of Value Added Tax (VAT)
(B). Transaction charges borne by the MDAs.
(i) They provide the platform for collection.
(ii) They will process all data about the payment and the payer.
(iii) They transmit the data and replicate them and lastly
(iv) Fund sweeping. For this, stakeholder below is to receive from Payment Solution Service providers (PSSPs) or Deposit Money Banks (DMBs) fund sweeping. This depends on who is playing the collection role for the MDAs. NIBBS is to receives 10% while Office of the Accountant General of the Federation (OAGF) to receives 2.5%.
2. New TSA sharing formula for collection cost received among the various stakeholders as follows:
3. The government link the revenue generating agencies to TSA portal through (PSSPS). PSSPs are companies appointed by government to collect TSA payments from ministries departments and agencies (MDAs).
As at today, payer has to initiate payment from the receiving agencies portal. The way to initiate is to get register or enrolled in the receiving agencies portal.
Requirement to Sign Up for E-Collection/TSA Platform
For E-Collection platform to be effective, these requirements are essential:
a. Provide Tax Identification Number (TIN) and certificate
b. Attached company documents like Corporate Affairs Commission (CAC) Certificate
c. Wait for account to be approved by the receiving agencies
Then, payer cab initiate payment from payer personal account in the receiving agencies portal
Payer will automatically transfer to TSA portal from the receiving agencies portal, for instance Remita
4. Time to Initiate Payment
Payer can only initiate Payment into TSA only when step 3 is being completed.
The addition of Etranzact, Interswitch to join SystemSpec (the operator of Remita) to collect government revenue. SystemSpec has acted as a sole PSSPS appointed by government to collect TSA payments from MDAs.
6. Electronic Payment Companies
The main electronic payment companies involved in TSA increased to four companies. They are Etranzact, Interswitch, SystemSpec and Nigeria Interbank settlement System (NIBSS).
Therefore, NIBBS ensures that all the relevant stakeholders comply with the framework and also communicate collection codes for remittance to PSSPs.
Ogbonna and Ojeaburu (2015) in their study recommended among others, that the government should strengthen Government Integrated Financial Management Information System (GIFMIS) module. Also, cover other area of interest in the national budget to achieve economic development. Moreover, more need to be done to ensure E-Collection are active in all MDAs.
Aderinokun,K.Onwuamaeze. D. & Emejo,J. (2020). CBN Unveils New Pricing Template for TSA Collections. THISDAYLIVE.
Ogbonna, G,N & Ojeaburu, F (2015). The Impact of Government Integrated Financial Management Information System (GIFMIS) on Economic Development of Nigeria. West African Journal of Businessnand Management Sciences, 4(1). 313-336. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3363159.
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