Technical Session 1:
PAYMENT SYSTEM
‘DeRemi Atanda - ED, SystemSpecs
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Technical Session 1:PAYMENT SYSTEM
Designing & Implementing
Electronic Payment Platform for
Government Revenue Collection
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Presentation Outline
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
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1. Background
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?
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2. Session Objectives
• Deeper Familiarity with e-Payment/Cashless Policy
• Framework for the Design & Implementation of
electronic Platform for Revenue Collections
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3. National e-Payment/Cashless Policy
• 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)
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4. Government Revenue Collection
What are the issues?
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Unwilling Payers?
Unmotivated Workforce?
Unfriendly Payment Processes?
Uncoordinated Collection Approaches?
Underestimation of Possible Potentials?
Other Issues?
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4. Government Revenue Collection
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
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5. Government Revenue Collection:
The electronic Platform Option…
• Key Considerations
• Managing the Deployment & Transition
• The Benefits
• Re-Inventing your Processes
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5. Government Revenue Collection:
The electronic Platform Option…
Bank
Branches
Internet
Banking
MFBs
Govt.
Collection
Mobile
Wallet
POS
Debit/Credit
Cards
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5. Government Revenue Collection:
The electronic Platform Option
• Key Considerations
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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!
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5. Government Revenue Collection:
The electronic Platform Option
• 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
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5. Government Revenue Collection:
The electronic Platform Option
• The Benefits
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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…
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5. Government Revenue Collection:
The electronic Platform Option
• Re-Inventing your Processes
• Getting Started is not the end
• Review and update your processes
• Update your platform as the need arises
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6. Case Study
Federal Government of Nigeria
e-Payments & e-Collections
Project
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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
SYLVA OKOLIEABOH, JANUARY 2015
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Issues with current FGN collections arrangement
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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
SYLVA OKOLIEABOH, JANUARY 2015
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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
SYLVA OKOLIEABOH, JANUARY 2015
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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
Government within a space of six years.
Federal
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... “
SYLVA OKOLIEABOH, JANUARY 2015
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The Case for e-Collection
SYLVA OKOLIEABOH, JANUARY 2015
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Current Status & Benefits
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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
SYLVA OKOLIEABOH, JANUARY 2015
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7. Conclusion & Summary
• Revenue Collections/IGR can be significantly
improved through electronic collection
• Review Existing Status & Determine Next Steps
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Technical Session 1:
PAYMENT
SYSTEM
There must be clear
ownership
of the initiative
Designing & Implementing
Electronic Payment Platform for
Revenue Collection
The time to doGovernment
it is now!
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THANK YOU
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