Apex bank, firm list benefits of e-collection payment

THE Central Bank of Nigeria (CBN) has reiterated the importance of keeping all funds in a single treasury account, saying it would eliminate corruption and leakages in Internally Generated Revenue (IGR).

  The apex bank has also entered into partnership with Systemspec for the use of its Remita platform for e-collections.

  Speaking at the CBN-Banks’ Sensitisation workshop in Lagos on e-collections, the Director, Banking and Payments System, CBN, Dipo Fatokun, said that e-collection is a solution for the collection of government fees, taxes and custom duties and allows government agencies to exploit the full capabilities of the technology to transform its services to the public.

  According to him, “it would also drive financial inclusion, reduce high security and safety risks;  facilitate the growth of e-commerce and foster transparency, curb corruption leakages.

  “For government, the cash-less policy enables the government especially the CBN to have a firmer grip on monetary policy and its attendant effects on inflation and economic stability. It also increases financial Inclusion, increased economic development, increased transparent tax collection and Increased IGR.”

 He also said when the government adopts e-collection, the IGR to the federal government would increase significantly.

 Citing an example, he said: “Ogun State introduced a cashless pilot scheme in 11 state-owned tertiary institutions in response to revenue leakages. At the end of first quarter 2012, the government reported revenue of N2.5 billion which was a 195 per cent increase from reported revenue in first quarter of 2011 without an increase in fees.”

 “The whole world is moving into a cash-less mode and Nigeria cannot be an exemption. The e-collection will avert a larger proportion of revenue theft, diversion of collected revenue and all sorts of corrupt practices associated with revenue collection.”