The Federal Inland Revenue Service (FIRS) has defended its decision to engage Xpress Payment Solutions Limited under the Treasury Single Account (TSA) framework, pushing back against former Vice President Atiku Abubakar’s strong criticism of the move. The agency described Atiku’s claims as unfounded, politically coloured, and capable of distorting a routine administrative decision.
Atiku had accused the government of handing sensitive national revenue functions to a private company in a manner that could compromise the integrity of public finance. He argued that the appointment risks turning government revenue operations into what he called a “private holding company controlled by a small circle of vested interests.” He further warned that the move represents “state capture masquerading as digital innovation.” His remarks also linked the development to past controversies involving monopolistic revenue consultants, suggesting a repeat of what he views as an unhealthy concentration of power.
But in a detailed response, FIRS dismissed the allegations as “incorrect and misleading,” stressing that the TSA infrastructure is not controlled by any single entity. According to the agency, the present structure relies on a multi-channel, multi–Payment Solutions Service Provider (PSSP) system that accommodates several established platforms, including Remita, Quickteller, Flutterwave, Etranzact, and XpressPay. The agency emphasized that these platforms do not operate as “collection agents” and do not receive any share of government revenue.
FIRS explained that all payments processed through these digital channels flow directly into the Federation Account, ensuring there is no private custody, diversion, or interception of public funds. It added that onboarding any service provider into the TSA payment ecosystem follows an open and verifiable procedure, making it impossible for any single company to enjoy monopoly privileges.
The agency further highlighted that its decision aligns with ongoing national tax reforms aimed at expanding transparency, improving reporting standards, and modernizing Nigeria’s revenue collection system. It said the broader target is to provide taxpayers with more secure and convenient payment options while strengthening the digital infrastructure that supports government operations.
Atiku, however, maintains that the process lacks transparency. He argues that such an important appointment should have been subject to wider public scrutiny, insisting that Nigerians deserve clarity regarding contract terms, fee arrangements, and the long-term implications for national revenue administration. He described the timing of the announcement as particularly insensitive, noting that the nation is currently dealing with security challenges and widespread public anxiety.
Despite the criticism, FIRS reaffirmed its confidence in the existing system, urging political actors to avoid portraying administrative decisions as political maneuvers. The agency insisted that its multi-channel strategy promotes healthy competition and supports Nigeria’s rapidly expanding financial technology sector.
Analysts note that a streamlined, multi-channel TSA system can significantly improve revenue efficiency. By reducing leakages and expanding digital access points, the government stands to enhance public revenue performance. The model also encourages innovation among fintech companies, potentially positioning the sector as a key driver of job creation and economic modernization.
