The Central Bank of Nigeria (CBN) has accentuated the importance of keeping all funds in a treasury single account. This, it said would eliminate corruption and leakages in Internally Generated Revenue (IGR).
The apex bank has also gone into partnership with Systemspec for the use of its Remita platform for e-collections.
Director, Banking and Payments System, CBN, Mr. Dipo Fatokun stated this yesterday at CBN- Banks’ sensitisation workshop in Lagos organised by Remita.
Fatokun said: “The revenue e- Collection is a solution for the electronic collection of Government Fees, Taxes and Custom Duties which allows government agencies to exploit the full capabilities of the technology to transform its services to the public.”
“It would also drive financial inclusion, reduce high security and safety risks, to facilitate the growth of e-commerce and would foster transparency, curb corruption leakages.”
Also speaking on the benefits of e-Payment channels, he said: “For government, the cashless policy enables the government especially the CBN to have a firmer grip on monetary policy and its attendant effects on inflation and economic stability. It also increases financial Inclusion, increased economic development, increased transparent tax collection and Increased IGR.
He also said when the government adopts e-collection, the IGR to the federal government would increase significantly.
Citing an example, he said: “Ogun State introduced a cashless pilot scheme in 11 state-owned tertiary institutions in response to revenue leakages. At the end of first quarter 2012, the government reported revenue of N2.5billion which was a 195 per cent increase from reported revenue in first quarter of 2011 without an increase in fees.”
“The whole world is moving into a cash-less mode and Nigeria cannot be an exemption. The e-collection will avert a larger proportion of revenue theft, diversion of collected revenue and all sorts of corrupt practices associated with revenue collection,” Fatokun added.
To the managing director, Systempecs, the firm that owns the Remita platform, Mr. John Obaro said: “We thank the federal government forgiven a wholly Nigerian company the opportunity to partner with them on this laudable objective.
Essentially, what this project does is collect funds on behalf of the federal government into a single account. So this blocks leakages from money getting missing. Remmita e-payment platform has the back engine to work with the government to ensure that all funds meant for government ends up in single account at the central bank.
“Government can have its funds in a timely manner and also account for its funds very easily, and government can do a lot more because there are now funds in its problem.” – Thisday.
