House of Reps Orders Remita to Refund N182.77bn to Federal Government Over TSA Discrepancy

In a significant move aimed at enhancing financial transparency and accountability, the House of Reps has directed SystemSpecs Ltd, operators of the Remita payment platform, to refund a staggering N182.77 billion to the Federal Government. This directive follows a comprehensive forensic audit that exposed substantial revenue discrepancies within the Treasury Single Account (TSA) framework dating back to 2015.

The order was issued on Wednesday during a meeting of the Public Accounts Committee (PAC) of the House, held in Abuja. The committee’s decision was based on findings from a report submitted by an independent consulting firm, Seyi Katola & Company (Chartered Accountants), which had been commissioned to investigate revenue leakages and fund non-remittance through the TSA platform.

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Breakdown of Remita’s Liabilities

The forensic report, presented by the firm’s managing partner, Dr. Adewale Oyebamiji, provided a detailed breakdown of the financial discrepancies. According to the audit, Remita had failed to refund critical amounts to the Federal Government under three major categories: under-refunded transaction processing fees, unpaid acquirer fees, and non-remitted collections.

The liabilities are as follows:

• Under-Refund of Transaction Processing Fees:
  Refundable Amount – N993 million
  Interest Charges – N2.42 billion
  Total: N3.42 billion
• Unpaid Acquirer Fees:
  Refundable Amount – N29.60 million
  Interest Charges – N72.25 million
  Total: N101.85 million
• Non-Remitted Collections:
  Refundable Amount – N54.24 billion
  Interest Charges – N125 billion
  Total: N179.25 billion

Cumulatively, these figures amount to N182.77 billion, which the committee has now mandated Remita to refund to the Federal Government Asset Recovery Account at the Central Bank of Nigeria (CBN). The specified account number for the refund is 0020054161191.

Committee’s Stand on Fiscal Accountability

Speaking at the meeting, PAC Chairman, Bamidele Salam, emphasized that the committee’s resolution was driven by documented evidence, including submissions from SystemSpecs, other TSA stakeholders, and the forensic consultants.

Salam noted, “This decision is rooted in verified data and a painstaking review process. It is a critical step in plugging revenue leakages and ensuring that all actors within the TSA ecosystem are held accountable.”

He further commended Seyi Katola & Company for conducting a thorough and professional audit, describing their work as “patriotic” and aligned with the National Assembly’s objective of promoting transparency and strengthening Nigeria’s fiscal responsibility framework.

Wider Implications for TSA Stakeholders

The TSA policy, introduced by the Federal Government to centralize revenue collection and reduce leakages, involves various stakeholders, including government MDAs, banks, and service providers like Remita. While the system has significantly improved revenue monitoring, there have been recurring concerns about unremitted funds and unclear fee structures among service providers.

The PAC noted that some commercial banks, also implicated in previous TSA audits, have already begun complying with refund orders. The committee called on other service providers in the TSA value chain to immediately reconcile their accounts and make necessary refunds.

“Those who have not complied must take this as a final warning. The Federal Government will not condone financial impunity, especially in a time when every kobo is critical for national development,” Salam asserted.

Awaiting Remita’s Response

As of the time of this report, SystemSpecs/Remita has yet to issue an official statement in response to the committee’s directive. Industry analysts suggest that the firm may challenge the findings or seek a review of the interest calculations applied by the auditors.

However, the House’s directive underscores a growing momentum within the legislature to enforce stricter controls on financial technology platforms and service providers entrusted with handling public funds.

Strengthening Fiscal Oversight

This development signals the House of Representatives’ increasing commitment to fiscal accountability and its readiness to take decisive action against corporate entities involved in financial mismanagement. It also serves as a reminder that partnerships with government agencies must be governed by transparency, integrity, and prompt financial reporting.

With the 2024 investigation shedding light on systemic gaps in fund management under the TSA, stakeholders now face intensified scrutiny and a renewed demand for accountability. The success of this recovery effort may also set the tone for further financial reforms and oversight within Nigeria’s public sector.