The Central Bank of Nigeria (CBN) has introduced a new pricing regime for the enhanced Treasury Single Account (TSA) e-collection model.
According to the guidelines for the on-going TSA eCollections enhancement project by the apex bank, which becomes effective January 1, 2021, all government collections must be channelled through the new TSA eCollection model.
In the new dispensation, Etranzact, Interswitch will be joining SystemSpec, operator of Remita, which is the sole Payment Solution Service Providers (PSSP) appointed by the government to collect TSA payments from ministries, departments and agencies (MDAs).
The CBN, in a circular dated December 10, 2020, signed by CBN Director, Banking Services Department, Sam Okojere, and addressed to all deposit money banks as well as chief executives of major electronic payment companies including SystemSpecs, Etranzact, Interswitch and NIBBS, however, warned that failure to comply with the new regulation would attract appropriate penalty.
The circular further pointed out that the charge for the service shall be grouped into two categories, namely, transaction charges borne by the payer and transaction charges borne by the MDAs.
Accordingly, transaction charges borne by the payer and carried out through Point of Sale (POS) shall attract a fee of N150 in addition to 0.50 per cent of the amount being paid subject to a maximum of N1,000 per transaction.
The apex bank further spelt out the sharing formula to include 43 per cent for PSSPs; 33 per cent for collecting banks; 11 per cent for the CBN; 10.5 per cent for NIBBS while the Office of the Accountant General of the Federation (OAGF) will have 2.5 per cent.
However, transactions through other channels shall attract a fee of N150 exclusive of value added tax (VAT), the circular stated.
On the other hand, however, transaction charges borne by the MDAs, the agencies are required to pay for the service based on the various activity segments namely, provision of collection platform, processing of data, data transmission and replication service as well as funds sweeping.
Essentially, for the funds sweeping fees, the CBN pointed out that the apex bank and NIBBS shall each receive 10 per cent and the OAGF 2.5 per cent from the service provider PSSPs or DMBs depending on who is playing a collection role for the MDA.
It explained that NIBBS shall be responsible for ensuring that all relevant stakeholders comply and that the amount remitted is consistent with the framework.
The apex regulator added that the collection codes for the remittances would also be communicated to the service provider by NIBBS.
“For the avoidance of doubt, all DMBs and licensed PSSPs are directed to comply with this directive”, the CBN stated.