NCS Moves against Planned Termination of Remita Contract on TSA

Managing Director of SystemSpecs, Mr. John Obaro

Emma Okonji

The Nigeria Computer Society (NCS) has berated the Senate Joint Committee on Finance, Banking, Insurance and other Financial Institutions and Public Accounts, for recommending the termination of the 2013 contract awarded to SystemSpecs by the Central Bank of Nigeria for electronic collection and remittance of government fund, through the Treasury Single Account (TSA).

President of the Information Technology Systems and Security Professionals (ITSSP), an arm of NCS, Mr. Rogba Adeoye said: “Calling for the termination of the contract at this period is not right, as it is being interpreted as stoppage of TSA operation.” He said instead, the Remita, which is the indigenous software developed and used by SystemSpecs to effect the TSA operation and its intellectual property should be encouraged and promoted to other countries to earn Nigeria foreign exchange.”

According to him, SystemSpecs used the Remita software application to support TSA and save Nigeria of huge financial loss, when it was needed most, insisting “that the termination of the contract will derail the TSA operation, undermine anti corruption stance of the current national government, discourage local Information Technology (IT) innovation and will kill local content initiative of the federal government.”

He said: “This is our stand as regards indigenous software product of our own, that the contract should not be terminated, but allowed to stay as one of IT products to enhance good government service delivery and transparency.”

Also commenting on the Senate recommendation, the Managing Director/Chief Executive Officer of SystemSpecs, Mr. John Obaro, said the company had always respected the terms of agreement it had with the federal government on TSA. According to him, “It is fulfilling to note that the Senate report did not accuse Remita of under-delivering on the substance of the contract and that our efforts are recognised as having played a significant role in the life of the nation when it mattered and that the disagreement has only been on the commercial terms of our contract.”

The Senate, last week, passed resolutions asking the federal government to urgently terminate the 2013 contract between the Central Bank of Nigeria, and SystemSpecs. It also came up with a resolution halting further deductions the federal government could have paid of the N25 billion contract sum to SystemSpecs, based on the charge of one per cent transaction fee for all collections.

The Senate also asked the CBN to ensure that the total refund of the portion of the deductions were retained by the CBN and the Deposit Money Banks, (DMBs), and present evidence of compliance to the appropriate Senate committee. It said consequently, the TSA transaction fee of one per cent for e-collection and transfer for any computation should be disregarded, just as it urged the CBN to carry out an in- house inquiry to sanitise its procedure for award of contracts as well as identify the culprits in the purported contract.

But in a swift reaction, Adeoye clarified that CBN Governor and the Office of the Accountant General of the Federation (OAGF) had confirmed that the payable charges as stated in the contract, is N7.8 billion as at time of sitting and not N25 billion as earlier speculated.

He said the Senate review as related to the chargeable cost should not be in retrospect as it could discourage local IT innovation and empowerment since the contract offers future renegotiation.

  • Charles Adeosun

    Saraki and his team, their agenda is to ensure the failure of buhari led goverment, Oga Buhari is sitting on a gun powder.

  • Blessing

    The senate have no power mandate the Central Bank to do and not to do. The senators are trying to become jack of all trade. They should be concerned about law making and oversight and not telling Ministers, Directors etc what to do. They are stepping out of line, mandating the IG. It is only in Nigeria that senators poke their noses in everything and everywhere as if they know more than everyone including the executive. They should concentrate on their job and allow the other arms do theirs.

    • xabnuq

      ..hmnn..interesting..senate poking there noses..?indeed!so this daylight robbery should continue?.for God sake..what do we have d CBN for ?this guys ve got some of d best brain in-house that can do this…how many Nigerians are this guys systemspecs employing with 8 billion they re collecting? When hundred of thousands of Nigerian youth are jobless.8 billion is enough to create employment for 50 thousand Nigerians!its a corrupt contract which serves as a conduit to drain our resources.So stop day dreaming.its a commonsense thing..if they want to sell d software…fine..if not..There are alternative for everything.yeye de smell!!

  • Bakwus

    Nigeria is the only country where IT company’s just rob folks and the robbed will feel cool with it.
    Where on earth do you charge someone based on a percentage of the amount the person is transferring? The question is : does it take the platform a bigger effort to transfer N1bn and less effort to transfer N100k? The truth is, it takes just the same effort and technological steps to do both transfers separately. Now, why then should the N1bn guy be punished especially as he does not have a choice due to the monopoly of the contract. Again, there is no known liability on the part of the service provider protecting the users… why are we so gullible as a people.
    The west developed a SWIFT transfer system and charge a constant amount regardless of how much you are transferring? Why can’t REMITA work same way?
    First the Banks enjoy float on the money, earn income and when the owner wants his money the Banks deduct his hard earned money via REMITA and share with REMITA and the CBN . WHY can’t it be a flat fee? . Why must we punish people for no reason by deducting their money unjustifiably? Why should REMITA enjoy monopoly if the user has no choice? Is the platform under pressure in any way based on the size of the money being transferred? Why then should the charges be a function of the amount being transferred?
    With due respect to REMITA and the ingenuity of the platform, they are robbing folks of their wealth. If there is no competition, the fee should be fixed. CBN should know this.

  • vic

    computer looters and distorters ganging together.

  • Cornel Nwankwo


  • DanielOsazuwa

    The Senate lack the power in our constitution to stop/ban TSA. That is not LEGISLATING. Their evil plan is to truncate TSA through the back door. Most Ministers are in bed with the Senate in this their evil plot. A lot of them were complaining about their inability to get any “alert” during budget defence because of TSA.

    Thank God, Buhari is now the CEO unlike….

  • taiwo

    Leave am for am