Nigeria’s revenue collection system has once again become a point of contention, with former Vice President Atiku Abubakar rejecting the Federal Inland Revenue Service’s appointment of Xpress Payment Solutions as a payment service provider under the Treasury Single Account (TSA) framework. Atiku claims the move revives a “revenue cartel” that channels public funds through private intermediaries, undermining transparency and accountability. Meanwhile, FIRS defends the appointment as a technical and administrative reform aimed at modernizing Nigeria’s tax collection system. This disagreement highlights deeper debates over how public finances should be managed, balancing efficiency with oversight and public trust.
Atiku’s Concerns
Atiku Abubakar has described the FIRS appointment of Xpress Payment Solutions as a serious threat to public accountability. He argues that the decision channels government funds through private companies in a way that recalls the so-called “Alpha Beta” revenue cartel from Lagos, warning that it could replicate similar practices at the national level. According to him, the appointment was made quietly, without sufficient public consultation, legislative oversight, or transparency. He questions the rationale behind selecting Xpress Payments when existing channels already manage tax collections efficiently. Atiku insists that this is “state capture masquerading as digital innovation” and could put Nigeria’s public finances under the control of a small group of private interests.
He has called for an immediate suspension of the appointment and a public inquiry into the contract, demanding full disclosure of all terms, fees, and beneficiaries. He also proposes an audit of the TSA system to prevent what he terms “creeping privatization” and suggests legal reforms to restrict private companies from performing core government revenue functions.
FIRS Responds
The Federal Inland Revenue Service has rejected Atiku’s claims, describing them as misleading. The agency insists the appointment is purely technical and administrative, not a political move. FIRS clarifies that the TSA collection framework uses a multi-channel model with multiple Payment Solution Service Providers (PSSPs), of which Xpress Payments is just one. Others include Quickteller, Remita, Etranzact, and Flutterwave.
FIRS also stressed that no private company holds or controls public funds; all revenues go directly into the Federation Account. They insist the selection process was transparent and competitive, aimed at improving efficiency, monitoring, and technological innovation in tax collection. The agency has warned against politicizing the matter, arguing that the reforms are essential to modernizing Nigeria’s revenue system.
The Bigger Picture
This dispute touches on broader issues of governance, accountability, and modernization. Atiku frames it as a risk to transparency and democratic oversight, fearing that public funds could be siphoned through private entities. FIRS presents it as a necessary reform to make revenue collection more efficient and technologically advanced.
The clash reflects a larger debate in Nigeria: how to balance efficiency and innovation in government systems with accountability and public trust. While Atiku’s criticisms emphasize the potential risks of private involvement in revenue collection, FIRS maintains that the reforms are part of ongoing efforts to strengthen Nigeria’s financial infrastructure.
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