1 Technical Session 1: PAYMENT SYSTEM ‘DeRemi Atanda - ED, SystemSpecs

2 Technical Session 1:PAYMENT SYSTEM Designing & Implementing Electronic Payment Platform for Government Revenue Collection

Presentation Outline 3 1.Background 2.Session Objectives 3.National e-Payment/Cashless Policy 4.Government Revenue Collections 5.The e-Payment Option 6.Case Study 7.Summary & Conclusion

4 Challenges experienced by Government MDAs with implementing the FGN e-Payment/Cashless Policy What is the Policy? Why the Policy? What needs to be done by who, when & how? 1. Background

5 Deeper Familiarity with e-Payment/Cashless Policy Framework for the Design & Implementation of electronic Platform for Revenue Collections 2. Session Objectives

6 What is the Policy? NPSV 2020 (R2) Document Why the Policy? Accelerated Development of the Economy What needs to be done by: Who? (Critical Stakeholders) When? (Timeline up to 2020) How? (Operational Guidelines) 3. National e-Payment/Cashless Policy

7 What are the issues? Unwilling Payers? Unmotivated Workforce? Unfriendly Payment Processes? Uncoordinated Collection Approaches? Underestimation of Possible Potentials? Other Issues? 4. Government Revenue Collection

8 What are the issues? Current Economic Climate makes it compelling to explore alternative approaches to shoring up Government Revenue Electronic Approach to Revenue Collections is an idea whose time has come 4. Government Revenue Collection

9 Key Considerations Managing the Deployment & Transition The Benefits Re-Inventing your Processes 5. Government Revenue Collection: The electronic Platform Option…

10 5. Government Revenue Collection: The electronic Platform Option… Govt. Collection Bank Branches Internet Banking POS Debit/Credit Cards Mobile Wallet MFBs

11 Key Considerations How BIG or SMALL is your COLLECTIONS challenge? What options exist & how well suited are they to you? Who is the key initiative owner? What is required for take off? Pitfalls to avoid Foreign does NOT mean better! Silo initiatives Cash will not disappear! 5. Government Revenue Collection: The electronic Platform Option

12 Payments & Revenue Collections Platform Deployment & Associated Issues Who or what are you up against? Who’s the initiative sponsor? Managing the Change Clear Communication (before, during & after) Training & Capacity Development 5. Government Revenue Collection: The electronic Platform Option

13 The Benefits Collect Revenue 168 hours instead of 35 hours a week Increased Collection channels at almost zero cost Access to reliable and verifiable data for planning Improved Service Delivery Access to comprehensive & timely reports Expanded Business Opportunities Ultimately improved revenue Many More… 5. Government Revenue Collection: The electronic Platform Option

14 Re-Inventing your Processes Getting Started is not the end Review and update your processes Update your platform as the need arises 5. Government Revenue Collection: The electronic Platform Option

15 Federal Government of Nigeria e-Payments & e-Collections Project 6. Case Study

SYLVA OKOLIEABOH, JANUARY 2015 Introduction  e-Collection is the flip side of e-payment  Outflows from the TSA are currently made through e-payment, while inflows are largely manual  e-collection completes the cycle of processing government transactions electronically  Project anchored by OAGF in collaboration with other stakeholders  Internal sensitisation & awareness before commencement 16

SYLVA OKOLIEABOH, JANUARY 2015 Issues with current FGN collections arrangement  Poor tracking of IGR and other collections  Leakages of government revenue and other inflows  Non remittance of revenue by collecting entities  Misappropriation of revenue and other collections  Inadequate, or sometimes out-right lack of records 17

SYLVA OKOLIEABOH, JANUARY 2015 The Case for e-Collection  To plug loopholes in the FGN revenue collection system  Enthrone a new regime of transparent and accountable IGR management  Improve available funds for funding developmental programs  Align with the on-going National e-payment policy  Ease the burden of revenue payers 18

SYLVA OKOLIEABOH, JANUARY 2015 The Case for e-Collection “ A sum of three trillion naira has been identified as unremitted revenue by the ministries, department and agencies (MDAs) belonging to the Federal Government within a space of six years. Chairman, House Committee on Appropriation, Mr John Enon disclosed this recently in Abuja at a workshop on “Enhancing Internally Generated Revenue Collection and Remittances System in the Federal Public Service” organised by the Budget Office of the Federation... “ 19

SYLVA OKOLIEABOH, JANUARY 2015 The Case for e-Collection 20

SYLVA OKOLIEABOH, JANUARY 2015 Current Status & Benefits  Nationwide deployment across MDAs  Multiple payment channels available to payers  Payments to Government on a 24/7 basis  Automated Receipting at the point of payment  Single view of all collections at any time  Ease of Payment Reconciliation  Easier payment process for payers  Reliable payment database for planning  Significant reduction in manual administrative operations 21

22 7. Conclusion & Summary Technical Session 1: PAYMENT SYSTEM Designing & Implementing Electronic Payment Platform for Government Revenue Collection Revenue Collections/IGR can be significantly improved through electronic collection Review Existing Status & Determine Next Steps There must be clear ownership of the initiative The time to do it is now!

23 THANK YOU