Nigeria Launches Treasury Management System to Boost Revenue and Budget Efficiency

Nigeria has launched a Treasury Management System to enhance revenue collection and budget efficiency. The system will automate tax remittances and improve financial oversight. Set to go live in March 2025, the initiative will be deployed in two phases, addressing both Naira and foreign exchange transactions to strengthen budget control.

Nigeria has recently launched a Treasury Management System aimed at enhancing revenue management, budget oversight, and tax remittance automation. This initiative follows the directives from the President and the Honourable Minister of Finance, focusing on efficient Treasury Management, Revenue Assurance, and improved performance across various ministries and government agencies, including Federal Government-Owned Enterprises (FGOEs).

The Treasury Management and Revenue Assurance System is formulated to unify and manage the Federal Government of Nigeria’s revenue collections and payments for all MDAs, including those receiving funds from donors and special programs. The system is set to launch on March 4, 2025, in two phases to ensure effective operation.

Phase One will address Naira payments and collections, allowing the Office of the Accountant-General of the Federation (OAGF) and MDAs to generate bank statements while automating tax deductions related to vendor payments, including Value Added Tax (VAT), Withholding Tax (WHT), and Stamp Duty. This phase aims to facilitate seamless revenue management right from the start.

Phase Two is anticipated to initiate on June 1, 2025, focusing on foreign exchange transactions and integrating with the ERP systems of MDAs. This phase will also introduce a budget module for MDAs not included in the national budget and manage non-budgetary financial activities, thereby strengthening budget control and ensuring comprehensive fiscal governance.

The introduction of the Treasury Management System in Nigeria signifies a progressive step towards the enhancement of revenue management and budgetary efficiency. By implementing a phased approach, the system aims to streamline financial activities across government entities and enforce rigorous budget controls, ultimately leading to improved fiscal performance. The initiative is poised to revolutionize Treasury Management and ensure better financial accountability in the public sector.

Original Source: techafricanews.com