1. E-PAYMENT FOR GOVERNMENT SUMMIT 2012
Remita Presentation to
E-PPAN
E-PAYMENT FOR GOVERNMENT SUMMIT 2012

2. “FGN e-Payment Adoption:
The story so far”
Demola Igbalajobi
Group Head, Remita Services
SystemSpecs Nigeria Limited

3. Presentation Outline The Prelude Treasury Single Account (TSA)
The CBN e-Payment Platform
The FGN e-Payment Project
Current Status
Challenges and Key Success Factors
Brief Introduction to the Remita Platform
Summary

4. The Prelude
FGN through the Office of the Accountant General (OAGF) had committed to implementing a Treasury Single Account as part of the Economic Reform Programme
This included the implementation of an Enterprise Financial Management System (GIFMIS) to be integrated with a robust e-Payment system
CBN as part of its National Payment System (NPS) Vision objectives was committed to promoting e-Payment adoption across the economy.
An important opportunity for a synergy between two major institutions

5. Benefits of e-Payment
Easy Tracking of payments to Beneficiaries’ Accounts hence it will assist Audit Trail
It reduces cases of corruption
It will assist corruption fighting agencies like EFCC and ICPC
It is the beginning of a cashless society
Overall increase in the efficiency of operation
Reduced transaction costs. Increased convenience of payments
Economic Growth and Development as Transparency and Accountability improve
Source: Presentation by H.E. Alhaji Ibrahim H. Dankwambo
(Former Accountant-General of the Federation & Current Governor of Gombe State March, 2009)

6. Treasury Single Account (TSA)

7. Treasury Single Account (TSA)
TSA is a unified structure of government bank accounts - a single account or a set of linked accounts for all government transactions; gives a consolidated view of government cash resources; based on the principle of unity of cash and unity of treasury
Will help Government to unify banking arrangements in order to have overall oversight of all cash flows.
Means of promoting efficiency, transparency and accountability in Government payments
Achieve End-to-End electronic processing of Government payments in line with the National Payment System (NPS) Vision 2020 objectives.

8. Why the Need for TSA?
Government currently has a fragmented banking arrangement - over 10, 000 bank accounts in multiple banks.
Over N70 billion government funds was lost in failed commercial banks (Source: OAGF, March 2012)
Government does not always know the balance of funds held in the commercial banks, across all MDAs
Government still goes to borrow money when it has money in commercial banks and other accounts in CBN.
The TSA will ensure that Government has access to funds when needed and would only borrow if there is no fund in the consolidated account

9. TSA Implementation
The existing Consolidated Revenue Fund (CRF) is now the TSA for Federal Government. It is maintained at CBN
MDAs initiate and approve transactions against approved budgets using a central Financial Management System (GIFMIS) that integrates with the CBN e-Payment Platform to automate and streamline payments across all MDAs
MDA payment instructions are sent to CBN to provide the cash for consummation
Most Government/ MDA funds are domiciled in CBN, reducing CBN’s huge cost of liquidity management for Open Market Operations (OMO)
Reduced idle cash balances of MDA funds at both CBN and Commercial Banks

10. The CBN e-Payment Platform

11. The CBN Remita e-Payment Platform
CBN has adopted Remita as its e-Payment platform for the following:
End-to-End electronic processing of payment instructions (salaries, vendors, taxes etc) for over 150 MDAs
Efficient collection of Government Revenues and timely remittance to TSA
Global monitoring of transactions online real-time as well as generate appropriate reports as required
Beneficiary accounts can be in Commercial Banks, Micro Finance Banks and Mortgage Banks

12. The CBN Remita e-Payment Platform
Remita is secure and flexible. Approval flows defined as required for each MDA
Payments are made from the Consolidated Revenue Fund (CRF) or from the accounts of each MDA at CBN
Integration with an enterprise financial management system
Provides visibility and traceability for CBN, OAGF and MDAs
No more use of paper mandates at CBN for CRF transactions
Payments effected from CRF using Remita since Feb 2012
Transactions totaling Over 150 Billion Naira a month is passing through the CBN Remita platform

13. FGN e-Payment Project

14. Project Scope Integration of Remita with CBN T24 Application
Integration of Remita with GIFMIS
Deployment of Remita to CBN, OAGF and 108 MDAs
Training of over 600 nominated users

15. Milestones 25 Oct 2011 - Project Kick Off
22 Dec System Testing of Remita-CBN T24 Interface
23 Jan Acceptance Testing of Remita-CBN T24 Interface
25 Jan Go Live of Remita-CBN T24 Interface
26 Jan Live payments by OAGF via Remita
29 March Acceptance Testing of Remita-GIFMIS Interface
02 April Go Live of payments via GIFMIS-Remita

16. Critical Success Factors
Political will and backing for the project from top level executives
Effective mobilization and sensitization of stakeholders on an ongoing basis, not just at the beginning
Clear road-map with timelines
Provision of project resources-Training, computers, Internet, consultants, reading materials
Selection of a proven e-payment platform that covers the entire scope of e-payment...no need to combine multiple solutions, handles payments and collections from the same solution with single sign- on/login, supports TSA, directly integrates into Govt core accounting solution, etc.
Effective change management

17. Current Status Integration of Remita with CBN’s T24 application
Debit of CRF Account with approved payments
Crediting of Banks’ CBN accounts with sums due
Remittance of funds to beneficiaries in commercial banks, micro-finance banks and mortgage banks
Integration of Remita with GIFMIS application
Processing of payments from over 100 MDAs
Feedback to GIFMIS users on their transactions
Deployment of Remita to 150+ MDAs for Capital payments
Training of over 600 MDA personnel on Remita

18. Some Challenges
Delays in the processing of beneficiary payments by some banks
Quality of legacy data presented by some MDAs
Assuaging doubt- will this thing work? Many projects have come and gone, etc.
Resistance to change especially by those not too familiar with computers
Teething problem associated with change to "normal" work processes by people who have done things the same way for many years
Coordination of multiple stakeholders and aggregating needs to ensure system is implemented to meet expectation of all parties
Unintended consequences of technology

19. What Has Helped
Firm commitment and support from CBN for the e-Payment drive
Management support from OAGF to deploy e-Payment across MDAs
Understanding of the dynamics of Government decision making
Ability of Remita to deploy quickly with minimal training
Flexibility of Remita to adapt to last minute changes
Collaboration and team work between project partners

20. Lessons Learnt
Nigeria and Nigerians can achieve ANYTHING If we choose to do it
Nigerian solutions have come of age and can compete with the best from any part of the world
The Civil service institution is a veritable platform for national transformation if given the opportunity and resources
Same process can be easily replicated by States, parastatals, LGAS, etc, and even extended to cover payroll, pension and biometrics so there is just a single solution
Incentives need to be provided to motivate civil servants saddled with such transformational initiatives and are still expected to do 100% of their normal jobs at the same time

21. Overview of Remita e-Payment Solution

22. Remita is a comprehensive ONE-STOP
What is Remita?
Remita is a comprehensive ONE-STOP
e-Payment, e-Collection and Payroll Solution.
Extremely robust and yet so easy to use, Remita is designed to be used by any public or private sector organization irrespective of Size, Structure or Specific requirements.

23. With Remita e-Payment you can:
View balance in all your accounts across all banks on just one screen
Handle e-payment of all types - salaries, pensions, taxes, suppliers/contractors, individuals, etc.
Make payments to beneficiaries in any Microfinance, Mortgage or Commercial Bank
Instantly notify payment beneficiaries by SMS and
Monitor and report on any activity or payment ever made and on the platform
Operate all your bank accounts from just one place right from the comfort of your home, office or anywhere you may be in the world

24. With Remita e-Collection you can:
Handle all collection types-fixed or variable amounts or regular or irregular intervals
Automatically debit accounts held in any bank in Nigeria
Collect cash from customers through any bank branch
View consolidated collection activities from all banks on a single screen
Pre-notify customers 3 days before actual debit

25. With Remita Payroll, within minutes You can:
Compute all staff allowances, loans, pensions, taxes and other deductions.
Use Biometrics to identify your staff and pensioners
Pay staff and pensioners with accounts in any Microfinance, Mortgage and commercial banks
Automatically deliver electronic schedules to PFAs, PFCs, Cooperatives, Unions and other statutory agencies
Provide staff with pay slips and tax computation slips
View unlimited Payroll, Pension & Biometrics Reports

26. Summary
Government is committed to the transformation of the financial landscape through a multi-pronged approach of e- payment implementation across all sectors
Government has started out with herself at the Federal level to demonstrate commitment to the initiative and serve as an example to others
Phased approach starting with over 100 MDAS. Other MDAs to come on board
The adoption and successful deployment of Remita by CBN will further contribute to the deepening of e-Payment at all levels of Government
Remita provides a complete solution, not just e-Payment

27. “… the level of accountability and transparency in public financial management witnessed in Nigeria today is brought about by the cumulative effects of the combination of various strategies among which is the e-payment system and it is being improved for new and better results”.
- By David Agba, 16 October 2010

28. Thank You