Remita Presentation to E-PPAN E-PAYMENT FOR GOVERNMENT SUMMIT 2012

Remita Presentation to

E-PPAN E-PAYMENT FOR GOVERNMENT SUMMIT

2012

“FGN e-Payment Adoption: The story so far”

Demola IgbalajobiGroup Head, Remita Services

SystemSpecs Nigeria Limited

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Presentation to: E-PAYMENT FOR GOVERNMENT SUMMIT 2012

The Prelude Treasury Single Account (TSA) The CBN e-Payment Platform The FGN e-Payment Project Current Status Challenges and Key Success Factors Brief Introduction to the Remita Platform Summary

Presentation Outline

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FGN through the Office of the Accountant General (OAGF) had committed to implementing a Treasury Single Account as part of the Economic Reform Programme

This included the implementation of an Enterprise Financial Management System (GIFMIS) to be integrated with a robust e-Payment system

CBN as part of its National Payment System (NPS) Vision 2020 objectives was committed to promoting e-Payment adoption across the economy.

An important opportunity for a synergy between two major institutions

The Prelude

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Easy Tracking of payments to Beneficiaries’ Accounts hence it will assist Audit Trail

It reduces cases of corruption It will assist corruption fighting agencies like EFCC and

ICPC It is the beginning of a cashless society Overall increase in the efficiency of operation Reduced transaction costs. Increased convenience of

payments Economic Growth and Development as Transparency and

Accountability improve Source: Presentation by H.E. Alhaji Ibrahim H.

Dankwambo (Former Accountant-General of the Federation & Current

Governor of Gombe State - 30 March, 2009)

Benefits of e-Payment

Treasury Single Account (TSA)

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TSA is a unified structure of government bank accounts - a single account or a set of linked accounts for all government transactions; gives a consolidated view of government cash resources; based on the principle of unity of cash and unity of treasury

Will help Government to unify banking arrangements in order to have overall oversight of all cash flows.

Means of promoting efficiency, transparency and accountability in Government payments

Achieve End-to-End electronic processing of Government payments in line with the National Payment System (NPS) Vision 2020 objectives.

Treasury Single Account (TSA)

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Government currently has a fragmented banking arrangement - over 10, 000 bank accounts in multiple banks.

Over N70 billion government funds was lost in failed commercial banks (Source: OAGF, March 2012)

Government does not always know the balance of funds held in the commercial banks, across all MDAs

Government still goes to borrow money when it has money in commercial banks and other accounts in CBN.

The TSA will ensure that Government has access to funds when needed and would only borrow if there is no fund in the consolidated account

Why the Need for TSA?

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The existing Consolidated Revenue Fund (CRF) is now the TSA for Federal Government. It is maintained at CBN

MDAs initiate and approve transactions against approved budgets using a central Financial Management System (GIFMIS) that integrates with the CBN e-Payment Platform to automate and streamline payments across all MDAs

MDA payment instructions are sent to CBN to provide the cash for consummation

Most Government/ MDA funds are domiciled in CBN, reducing CBN’s huge cost of liquidity management for Open Market Operations (OMO)

Reduced idle cash balances of MDA funds at both CBN and Commercial Banks

TSA Implementation

The CBN e-Payment Platform

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CBN has adopted Remita as its e-Payment platform for the following: End-to-End electronic processing of payment

instructions (salaries, vendors, taxes etc) for over 150 MDAs

Efficient collection of Government Revenues and timely remittance to TSA

Global monitoring of transactions online real-time as well as generate appropriate reports as required

Beneficiary accounts can be in Commercial Banks, Micro Finance Banks and Mortgage Banks

The CBN Remita e-Payment Platform

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Remita is secure and flexible. Approval flows defined as required for each MDA

Payments are made from the Consolidated Revenue Fund (CRF) or from the accounts of each MDA at CBN

Integration with an enterprise financial management system

Provides visibility and traceability for CBN, OAGF and MDAs

No more use of paper mandates at CBN for CRF transactions

Payments effected from CRF using Remita since Feb 2012

Transactions totaling Over 150 Billion Naira a month is passing through the CBN Remita platform

The CBN Remita e-Payment Platform

FGN e-Payment Project

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Integration of Remita with CBN T24 Application Integration of Remita with GIFMIS Deployment of Remita to CBN, OAGF and 108

MDAs Training of over 600 nominated users

Project Scope

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25 Oct 2011 - Project Kick Off 22 Dec 2011 - System Testing of Remita-CBN T24

Interface 23 Jan 2012 - Acceptance Testing of Remita-CBN T24

Interface 25 Jan 2012 - Go Live of Remita-CBN T24 Interface 26 Jan 2012 - Live payments by OAGF via Remita 29 March 2012 - Acceptance Testing of Remita-GIFMIS

Interface 02 April 2012 - Go Live of payments via GIFMIS-

Remita

Milestones

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Political will and backing for the project from top level executives

Effective mobilization and sensitization of stakeholders on an ongoing basis, not just at the beginning

Clear road-map with timelines Provision of project resources-Training, computers,

Internet, consultants, reading materials Selection of a proven e-payment platform that covers the

entire scope of e-payment...no need to combine multiple solutions, handles payments and collections from the same solution with single sign-on/login, supports TSA, directly integrates into Govt core accounting solution, etc.

Effective change management

Critical Success Factors

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Integration of Remita with CBN’s T24 application Debit of CRF Account with approved payments Crediting of Banks’ CBN accounts with sums due Remittance of funds to beneficiaries in

commercial banks, micro-finance banks and mortgage banks

Integration of Remita with GIFMIS application Processing of payments from over 100 MDAs Feedback to GIFMIS users on their transactions

Deployment of Remita to 150+ MDAs for Capital payments

Training of over 600 MDA personnel on Remita

Current Status

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Delays in the processing of beneficiary payments by some banks

Quality of legacy data presented by some MDAs Assuaging doubt- will this thing work? Many projects have

come and gone, etc. Resistance to change especially by those not too familiar

with computers Teething problem associated with change to "normal" work

processes by people who have done things the same way for many years

Coordination of multiple stakeholders and aggregating needs to ensure system is implemented to meet expectation of all parties

Unintended consequences of technology

Some Challenges

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Firm commitment and support from CBN for the e-Payment drive

Management support from OAGF to deploy e-Payment across MDAs

Understanding of the dynamics of Government decision making

Ability of Remita to deploy quickly with minimal training Flexibility of Remita to adapt to last minute changes Collaboration and team work between project partners

What Has Helped

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Nigeria and Nigerians can achieve ANYTHING If we choose to do it

Nigerian solutions have come of age and can compete with the best from any part of the world

The Civil service institution is a veritable platform for national transformation if given the opportunity and resources

Same process can be easily replicated by States, parastatals, LGAS, etc, and even extended to cover payroll, pension and biometrics so there is just a single solution

Incentives need to be provided to motivate civil servants saddled with such transformational initiatives and are still expected to do 100% of their normal jobs at the same time

Lessons Learnt

Overview of Remita e-Payment Solution

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What is Remita?

Remita is a comprehensive ONE-STOP e-Payment, e-Collection and Payroll

Solution.

Extremely robust and yet so easy to use, Remita is designed to be used by any public or private sector organization

irrespective of Size, Structure or Specific requirements.

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View balance in all your accounts across all banks on just one screen

Handle e-payment of all types - salaries, pensions, taxes, suppliers/contractors, individuals, etc.

Make payments to beneficiaries in any Microfinance, Mortgage or Commercial Bank

Instantly notify payment beneficiaries by SMS and email

Monitor and report on any activity or payment ever made and on the platform

Operate all your bank accounts from just one place right from the comfort of your home, office or anywhere you may be in the world

With Remita e-Payment you can:

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• Handle all collection types-fixed or variable amounts or regular or irregular intervals

• Automatically debit accounts held in any bank in Nigeria

• Collect cash from customers through any bank branch

• View consolidated collection activities from all banks on a single screen

• Pre-notify customers 3 days before actual debit

With Remita e-Collection you can:

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With Remita Payroll, within minutes You can:

Compute all staff allowances, loans, pensions, taxes and other deductions.

Use Biometrics to identify your staff and pensioners

Pay staff and pensioners with accounts in any Microfinance, Mortgage and commercial banks

Automatically deliver electronic schedules to PFAs, PFCs, Cooperatives, Unions and other statutory agencies

Provide staff with pay slips and tax computation slips

View unlimited Payroll, Pension & Biometrics Reports

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Government is committed to the transformation of the financial landscape through a multi-pronged approach of e-payment implementation across all sectors

Government has started out with herself at the Federal level to demonstrate commitment to the initiative and serve as an example to others

Phased approach starting with over 100 MDAS. Other MDAs to come on board

The adoption and successful deployment of Remita by CBN will further contribute to the deepening of e-Payment at all levels of Government

Remita provides a complete solution, not just e-Payment

Summary

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“… the level of accountability and transparency in public financial management witnessed in Nigeria today is brought about by the cumulative effects of the combination of various strategies among which is the e-payment system and it is being improved for new and better results”.

- By David Agba, www.allafrica.com; 16 October 2010

http://www.allafrica.com/


Thank You

Documents

Remita Presentation to E-PPAN E-PAYMENT FOR GOVERNMENT SUMMIT 2012