TSA Controversy: What’s Really Going on?

Nigeria's Treasury Single Account (TSA) has recently been the focus of several controversies.

Explanation of the TSA

- Established in 2011 and fully implemented by 2015, the TSA serves as a unified account within the Central Bank of Nigeria (CBN), intended to collect all federal revenue.

Its purpose was to eliminate the multitude of disjointed accounts maintained by Ministries, Departments, and Agencies (MDAs) in commercial banks, thereby reducing financial leakages, enhancing transparency, and preventing MDAs from incurring high-interest loans while funds are idle elsewhere. Since its inception, the TSA has been credited with saving Nigeria billions of naira in interest payments and minimising wastefulness.

Latest Controversy

Atiku Abubakar, a former Nigerian Vice President, has criticised the Federal Inland Revenue Service (FIRS) for naming Xpress Payment Solutions Limited as a new agent for collecting under the TSA system. He argues that this decision brings back the previous "Alpha Beta" revenue cartel that operated in Lagos, which he claims acted as a private toll on government resources. Atiku is calling for an urgent halt to this appointment, along with a thorough public investigation, transparency about contract details, involved parties, fee arrangements, and a detailed audit of TSA functions to curb the “creeping privatisation” in tax collection.

FIRS has strongly rebutted these accusations. In a statement, the agency described Atiku’s assertions as “misleading” and emphasised that no private company has been awarded exclusive control over federal revenue. They clarified that Xpress Payments is merely one of various Payment Solution Service Providers (PSSPs) within a diverse multi-channel approach that includes others like Quickteller, Remita, Etranzact, and Flutterwave. FIRS maintains that PSSPs do not collect fees or commissions and that all money directly enters the Federation Account without any redirection.

Main areas of disagreement

- Atiku’s perspective: The appointment was made hastily and without clarity, introducing unnecessary intermediaries, and poses a risk of "state capture" masquerading as technological progress.

- FIRS’ perspective: The framework is competitive and transparent, aimed at enhancing the ease of tax payment; no exclusive rights are granted.

This dispute is part of a larger discussion about issues of transparency, corruption, and whether TSA reforms genuinely prevent financial leakages or merely transfer them to private entities. Research indicates that the adoption of TSA has not notably improved the perception of corruption in Nigeria, highlighting the continued demand from stakeholders for enhanced oversight.

Currently, there is a political struggle between Atiku and opposing factions and the FIRS, which defends their actions as a standard, technology-oriented enhancement to revenue collection. The resolution of this matter is likely to influence how Nigeria manages the modernisation of its tax systems while ensuring public responsibility.

Different Viewpoints

Pro-government argument supporters assert that the TSA has saved over ₦10 trillion since its introduction, has enhanced fiscal responsibility, and that all funds are directed to the CBN. They claim that allegations of personal benefit are baseless since no judicial or audit investigation has confirmed any misappropriation.

Critics and opposing views opponents contend that the system is being exploited through the biased selection of payment partners like Xpress and Remita, and that the focus on a "TSA-only" perspective conceals ongoing leakages and favouritism in contracts. They demand full transparency regarding contracts and an independent investigation.

Legal and Oversight Perspective

Committees on Public Accounts can summon officials for inquiries, but do not have the authority to enforce the return of funds; that responsibility lies with the CBN, the Office of the Accountant-General, and anti-corruption agencies. There have been no reported criminal convictions related to these TSA matters.

The disputes are more about politics and investigations than about confirmed misconduct. While audits and legislative inquiries have cleared NUPRC, and neither Remita nor Xpress Payments has been found guilty of misappropriation in court, opposition rhetoric continues to propel the debate. Civil society's main demand centres on improving transparency regarding contracts, audit findings, and the movement of funds.

Who is Xpress Payments Solutions Limited?

Xpress Payments Solutions Ltd is a fintech enterprise based in Nigeria that specialises in payment gateway and collection services. Established in 2019, it holds registration with the Corporate Affairs Commission (CAC). The company’s directors and shareholders are private individuals and do not appear in the public documentation reviewed. There is no evidence of any court convictions or official investigations associating the company with illegal activities.

Why was it introduced as a TSA Collecting Agent?

In late 2025, the Federal Inland Revenue Service (FIRS) designated Xpress Payments as one of several Payment Solution Service Providers (PSSPs) within the framework of the Treasury Single Account (TSA). This initiative aimed to enhance the options available for taxpayers to pay taxes (through platforms such as Remita, Quickteller, and Flutterwave) and to streamline the collection process. According to FIRS, this system is multi-faceted, prevents monopoly by private entities, and ensures that all funds are deposited directly into the Federation Account.

Evidence of Tinubu or Alpha Beta Involvement?

Various sources consistently cite Atiku’s remarks that the appointment of Xpress Payments resembles the Alpha Beta model from Lagos during Tinubu’s administration, yet none present independent evidence (such as court rulings, audit reports, or formal investigations) that would validate any unlawful behaviour, personal gain, or direct connection between Tinubu and either Xpress Payments or Alpha Beta.

Bottom Line

Xpress Payments Solutions Ltd is a licensed Nigerian fintech company that has recently been introduced as a channel for TSA collections, diversifying payment methods.

Critics allege that it follows a "revenue cartel" pattern reminiscent of Lagos (Alpha Beta) and reference President Tinubu's previous actions, but there are no established convictions, official audit results, or confirmed evidence linking Tinubu, Alpha Beta, or Xpress Payments to illegal activities.

The debate surrounding this issue is political and calls for transparency, though as of now, no substantial evidence of illegal actions has been verified.