Revenue Collection & Receipts

Revenue Collection & Receipts

Quick Answer: All money due to the Federal Government must be properly classified, collected electronically, receipted with an official receipt, and remitted to the designated Treasury Single Account (TSA) at the CBN. The Financial Regulations split federal revenue into Federation Account revenue (shared with sub-national governments) and the Federal Government's independent revenue (paid into the Consolidated Revenue Fund), and the OAGF's November 2025 circulars now make electronic collection mandatory with the Federal Treasury e-Receipt (FTeR) as the only valid proof of payment from January 1, 2026.

Classification of Federal Revenue

Federal revenue is not a single pot. The Constitution and the Financial Regulations distinguish two streams:

The Federation Account (FR 203) is a distributable pool: all revenues collected by the Federal Government are paid into it (with limited exceptions such as the personal income tax of armed forces and Foreign Affairs personnel), and the Federation Account Allocation Committee (FAAC) shares the balance monthly. The Consolidated Revenue Fund (FR 202) is the Federal Government's own operating fund and receives the Federal share from the Federation Account, the Federal share of VAT, and the Federal independent revenue.

The FR define revenue broadly (FR 201) to include:

• Receipts arising from the operation of any law;
• Earnings from government property;
• Interest on loans, bonds, and investments;
• Dividends from government shares;
• Interest on bank account operations;
• Waived financial commitments.

E-Collection and the TSA Framework

Collection is no longer a cash-and-cheque affair. Since the Treasury Single Account (TSA) policy (originally circularised from 2008 and enforced from 2015), all federal receipts route through a unified banking framework at the CBN. The OAGF's November 2025 circulars went further: they ban physical cash collection entirely, require MDAs to display "NO PHYSICAL CASH RECEIPT" notices at all collection points, and mandate deployment of POS or approved e-collection devices.

The current collection platforms are:

• Remita — SystemSpecs' platform that won the TSA consolidation bid in 2012, charging a 1% transaction fee shared with the CBN, banks, and Payment Solution Service Providers (PSSPs).
• TMRAS (Treasury Management and Revenue Assurance System) — launched March 4, 2025, to layer on and eventually supersede Remita, with Phase 1 covering naira payments and Phase 2 (from June 1, 2025) covering FX and MDA ERP integration.
• RevOP (Revenue Optimisation Platform) — approved as the end-to-end billing, reconciliation, and monitoring system, integrating TSA, GIFMIS, CBN, NIBSS, FIRS, and revenue-collecting banks into a single digital hub.

Receipting and Remittance

The Financial Regulations are strict on receipting. Every sum of money received by or on behalf of the Federal Government must be supported by an official receipt. Key rules:

• FR 218 — Revenue Collectors must keep proper cash books and ensure daily lodgment of collections to the designated bank account.
• FR 222 — Each MDA must maintain a separate revenue bank account at the CBN; balances are transferred to the CRF monthly.
• FR 227–228 — Revenue may be collected through approved banks and by Sub-Accounting Officers, but only on prescribed forms.
• FR 207 — Fully funded federal agencies remit 100% of IGR to the CRF; partially/self-funded agencies remit an approved percentage monthly, by the 14th of the following month; operating surplus balances are remitted after preparation of the financial statements.

The OAGF's November 2025 circulars add two further requirements: (a) MDAs may not deduct fees, commissions, or service charges at the point of collection — the gross amount must route directly into the TSA, and service charges are paid separately from TSA sub-accounts; and (b) the Federal Treasury e-Receipt (FTeR) becomes the only legally recognised proof of payment for federal transactions from January 1, 2026, generated centrally on the RevOP platform and delivered electronically to payers.

Non-Tax Revenue

Not all federal revenue is tax. MDAs routinely collect non-tax revenue, which must be receipted and remitted just like tax revenue. Common categories:

• Fees and charges — for licences, permits, registrations, and statutory services rendered by an MDA.
• Licence and registration fees — professional, sectoral, or operational licences issued under enabling statutes.
• Rent on government property — income from leasing federal lands, buildings, or equipment.
• Sales of government assets and publications — proceeds from disposal of stores, surplus equipment, or official publications.
• Interest and dividends — returns on federal investments, bank deposits, and equity holdings.

The Accounting Officer must ensure (under FR 112/113 functions) that all revenues are properly assessed, collected, compared with budgeted estimates to highlight variances, and remitted through the appropriate government account. Any loss of revenue through negligence exposes the responsible officer to a surcharge for the full amount under FR 232/240.

Why This Matters for COMPRO

Revenue questions in the Financial Regulations domain test whether a candidate can distinguish Federation Account revenue from CRF/independent revenue, knows the daily/monthly remittance timelines, and understands that electronic collection is now mandatory. Remember the chain: classify → collect electronically → receipt officially → remit to TSA/CBN → reconcile. A break at any step is a financial irregularity that the Accounting Officer must answer for.