E-Financial
FG to Issue Circular on New e-Collection Regime by Remita
Federal Government is to issue a circular and a booklet of Frequently Asked Questions (FAQ) in a bid to enlighten the public on the usage of electronic revenue collection platform aimed at checking theft, diversion of collected revenue and all sorts of corrupt practices associated with revenue collection.
The booklets will be available at registration desks of all its Ministries, Departments and Agencies (MDAs) and project members’ banks.
Recently, the federal government held a sensitization workshop on e-collection and directed all its MDAs to close their revenue accounts with Deposit Money Banks [DMBs] latest by February 28.
Government gave the directive while unveiling an electronic revenue collection platform, powered by Remita, indigenous software packaged developed SystemSpecs, Nigeria’s software powerhouse.
The platform was built to check theft, diversion of collected revenue and all sorts of corrupt practices associated with revenue collection.
According Mr. Jonah Otunla, accountant-general of the Federation, at the Abuja workshop, designed to sensitize MDAs to the commencement of the electronic revenue collection project, said the implementation of the project, which kicked off on January 1, would enthrone a new regime of centralized, transparent and accountable internally generated revenue management system.
As such, he asked that the balances in the revenue accounts should be transferred to the Consolidated Revenue Fund of the Federal Government, stating further that any MDA that failed to comply with the directive by the end of February would be sanctioned.
Otunla said the new platform would improve the availability of funds for financing of developmental projects and budgets as well as plugging loopholes in government revenue collection and management.
The commencement of the e-collection platform, he informed, was a product of series of treasury reforms that began in 2012 and aimed at ensuring transparency and accountability in the management of the nation’s resources.
According to him, the reforms have led to the introduction of the Government Integrated Financial Management Information System and the Treasury Single Account. “We have rolled out the GIFMIS and TSA implementation. At inception, a total of 93 agencies were enrolled and as of today, we have about 551, which is about three quarter of the total budget of the federation.
“We have yet to realise the full potential of the reforms. Some big budget MDAs to wit the National Assembly, National Judicial Council, the armed forces and some other autonomous agencies have been reluctant to be brought into the GIFMIS and TSA process.
“The implication of this is that substantial cash resources of the government are still lying idle at a time when our cash flow is facing a lot of challenges. In the face of the cash flow problem, we need to be more creative. We can enhance the performance of the budget by either improving revenue or reducing costs.”
Otunla added that, “Our efforts this morning on the e-collection of revenue is a revenue enhancing programme by freeing more funds for budget performance. We are perfecting a system of collection. We are not perfecting a system depriving the commercial banks of income.
“So, we just want to make revenue collection a little more efficient; but in the process, it might influence the inflow to the commercial banks and that’s why the Central Bank of Nigeria is playing a pivotal role.”
While shedding light on the new revenue collection platform, the Director, Funds, Office of the Accountant-General of the Federation, Mr. Mohammed Dikwa, said, government revenues would now be paid into the CRF/TSA at the Central Bank through any branch of the DMBs.
He said, “A treasury circular on e-collection will be issued next week. With the coming of e- collection, MDAs can no longer maintain revenue bank accounts with commercial banks. You are, therefore, advised to transfer any outstanding balance in your RBA to the CRF and immediately commence the processes of closing them.
“The MDAs are given up to February 28, 2015to close the RBAs. Appropriate sanctions shall be applied against any MDA that fails to comply.”
To ensure the successful implementation of the project, Dikwa explained that a multi-stakeholder committee comprising the OAGF, CBN and representatives of all the commercial banks was set up to agree on the implementation plans and timelines.
The Development Bank of Nigeria (DBN) has received shareholders’ approval to invest $2.5 million or 25% equity stake in the proposed Youth Entrepreneurship Investment Bank (YIB) — a new investment vehicle designed to provide equity funding to youth-led businesses in Nigeria.
The approval came during the bank’s 8th Annual General Meeting (AGM) which was held in Abuja.
The move is a strategic step aligned with the bank’s broader mission to support Micro Small and Medium Enterprises (MSMEs), job creation and entrepreneurship among Nigeria’s youth.
According to Tony Okpanachi, DBN Managing Director, Youth Entrepreneurship Investment (YIB) is not a conventional bank. It is an investment vehicle that will deploy equity into promising youth-owned enterprises.
“This is about backing ideas and unlocking growth through long-term capital — not debt,” Okpanachi told journalists after the AGM.
The initiative is a partnership between DBN, the Nigeria Sovereign Investment Authority (NSIA), and the African Development Bank (AfDB), with additional backing expected from development finance institutions.
The African Development Bank (AfDB) is currently in discussion to provide debt financing, which would bolster the capital available to the vehicle without diluting equity.
“This $2.5 million is DBN’s initial stake,” Okpanachi said. “We are co-investing alongside NSIA, and this sets the stage for broader institutional participation — both local and global.”
YIB aims to fill a critical funding gap in Nigeria’s startup ecosystem. While the country has a vibrant pool of young entrepreneurs, access to early-stage funding remains limited. Many businesses rely on short-term loans or informal capital, which often constrains scalability and long-term planning.
Okpanachi emphasised that YIB’s structure is deliberately designed to avoid the trappings of a traditional bank.
“This is not a commercial bank. It won’t provide loans or open retail accounts. It’s structured purely as an equity-focused investment vehicle, targeting scalable ventures with strong fundamentals and youth ownership”, he noted.
This will be DBN’s second strategic investment following the establishment of its wholly owned impact credit guarantee subsidiary, which offers partial credit guarantees to MSMEs.
Final structuring of YIB is underway. Following the shareholder greenlight, the promoters are now coordinating with the relevant stakeholders to complete incorporation, legal frameworks, and capital mobilisation.
“We expect all groundwork to be finalised by the end of this year. With operations likely to begin by early 2026,” Okpanachi disclosed.
The move comes amid growing concerns over Nigeria’s rising youth unemployment rate.
By investing directly into youth-led businesses, DBN and its partners aim to accelerate job creation, promote innovation, and catalyse broader economic development.
“There’s already strong interest from global players,” the MD noted, though he declined to name institutions due to ongoing negotiations.
“What we are doing is laying the foundation. YIB will serve as a credible, well-structured platform to crowd in institutional capital and scale youth-driven entrepreneurship.”
He added that YIB is not a one-off initiative but part of a long-term strategy to create sustainable investment channels focused on Nigeria’s demographic dividend.
“This is more than a financial transaction,” Okpanachi said. “It is a statement of intent. We believe in the entrepreneurial potential of Nigerian youth — and we are backing that belief with real capital.”
The Central Bank of Nigeria (CBN) has slammed a ₦250 million fine on Paystack for operating Zap, its peer-to-peer payment app, as a wallet in breach of its regulatory approval.
The apex bank flagged Zap as a deposit-taking product, a function reserved exclusively for institutions with microfinance or banking licences, according to a report by TechCabal.
Launched in March, Zap allows users to send and receive money, positioning itself as a consumer-facing digital wallet.
However, Paystack only holds a switching and processing licence, which permits it to facilitate transactions but not to hold customer funds. This regulatory limitation is at the heart of the CBN’s sanction, sources familiar with the matter said.
“Paystack is working closely with the regulator as they further review Zap, and out of respect for the process, we won’t be making any public comments at this time,” a company spokesperson said.
The penalty comes amid a legal dispute between Paystack and Zap Africa, a Nigerian crypto startup, which has accused the fintech of trademark infringement.
In Nigeria’s highly regulated financial services space, digital wallets are considered deposit-taking entities, and offering such services without the requisite licence raises compliance concerns for the regulator.
Although Zap reportedly does not directly hold customer funds, it operates in partnership with Titan Trust Bank, which is authorised to accept deposits.
This is Paystack’s most significant publicly disclosed regulatory sanction since it received CBN approval in 2016. It reveals the growing scrutiny facing fintech firms as they transition from enterprise-focused offerings to consumer-facing financial services.
Guaranty Trust Bank (GTBank) has announced an increase in its SMS transaction alert fee from ₦4 to ₦6 per message, effective May 1, 2025. The bank cited a recent rise in telecommunication tariffs by service providers as the reason for the adjustment.
In a message to customers, GTBank explained that SMS alerts sent to international phone numbers would attract higher charges due to varying telecom costs. The bank emphasized the importance of transaction alerts in helping customers monitor account activity
Customers who no longer wish to receive SMS alerts have the option to update their alert preferences by submitting a form available on the bank’s website via email. This move allows customers to manage their notification preferences according to their needs.
The fee increase affects GTBank customers, who will now be charged ₦6 per SMS alert for transactions
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