The Federal Government has dismissed claims by former Vice President Atiku Abubakar that the appointment of Xpress Payments Solutions Limited as part of the Treasury Single Account (TSA) framework represents a covert attempt to privatise national revenue collection.
In a statement released on social media on Sunday, Atiku described the decision as a move towards “state capture,” while the Federal Inland Revenue Service (FIRS), in a swift reaction, dismissed his claims as misleading.
Atiku had argued that the quiet appointment of Xpress Payments was reminiscent of the Alpha Beta revenue model that dominated Lagos State in the Tinubu era, which he said created “a private toll gate around public revenue” and channelled funds into “the hands of a politically connected monopoly.” He warned that replicating this system nationally risked transforming Nigeria from a republic into “a private holding company controlled by a small circle of vested interests.”
Atiku further criticised the timing of the appointment, which coincided with heightened national mourning over security challenges. “When a nation is grieving, leadership should show empathy and focus on securing lives, not on expanding private revenue pipelines,” he said.
He also raised concerns about the lack of consultation, stakeholder engagement, and National Assembly oversight, questioning the value Xpress Payments adds compared with existing TSA channels and urging transparency in the terms, beneficiaries, fee structures, and selection criteria.
“This is not reform. This is state capture masquerading as digital innovation,” he said, calling for the immediate suspension of the appointment, a comprehensive audit of TSA operations, and a legal framework to prevent private entities from acting as proxies in core government revenue systems. “Nigeria’s revenues are not political spoils. They are the lifeblood of our national survival, especially at a time when insecurity is tearing communities apart,” Atiku added.
The Federal Inland Revenue Service (FIRS) responded firmly, describing his assertions as “incorrect, misleading, and risk unnecessarily politicising a purely administrative and technical process.”
In a statement signed by Arabinrin Aderonke Atoyebi, Technical Assistant on Broadcast Media to the Executive Chairman, the agency clarified that no monopoly had been granted to any private entity. “The FIRS does not operate any exclusive or single-gateway revenue-collection arrangement, and no private entity has been granted a monopoly over government revenues,” the statement read.
The FIRS explained that Nigeria operates a multi-channel, multi-Payment Solution Service Provider (PSSP) framework, which includes Quickteller, Remita, Etranzact, Flutterwave, and Xpress Payments. “No private entity has been granted a monopoly over government revenues,” the statement emphasised.
The agency also clarified that PSSPs do not act as collection agents, do not earn a processing fee per payment, and have no access to government funds, which are remitted directly into the Federation Account.
According to the FIRS, the multi-channel framework is designed to improve efficiency, broaden options for taxpayers, enhance accountability, and promote innovation and employment within the financial technology sector.
“All PSSPs are admitted through a transparent, open, and verifiable procedure that ensures fairness and equal opportunity,” the statement said, stressing that ongoing tax reform aims to modernise Nigeria’s revenue system and must not be “dragged into partisan controversy.”
