Is Nigeria returning to revenue monopolies? Atiku Abubakar slams Xpress Payments TSA role

Former Vice President Atiku Abubakar has publicly criticized the Federal Inland Revenue Service’s (FIRS) recent decision to onboard Xpress Payment Solutions Limited as a participant in the Treasury Single Account (TSA) collection framework. In a statement shared on social media, Atiku described the appointment as a risky attempt to revive what he termed the “Alpha Beta-style revenue system” once prevalent in Lagos under the leadership of President Bola Tinubu as governor.

According to Atiku, the move could signal the emergence of a “national revenue cartel,” drawing private intermediaries into core government revenue operations. He claimed that such a development could undermine public accountability, reduce transparency, and place the nation’s finances in the hands of a limited circle of private interests.

The former vice president also criticized the timing of the appointment, describing it as insensitive amid rising insecurity and national tragedies across Nigeria. He urged the government to suspend the engagement of Xpress Payments and called for a comprehensive public inquiry into the terms of the contract, selection criteria, fee structures, and ultimate beneficiaries. Atiku further recommended a full audit of TSA operations to prevent what he described as the “gradual privatization of revenue collection.”

He argued that governance should focus on institutional strengthening, transparent financial processes, and a tax system free from political manipulation. “State capture disguised as digital innovation is not a solution for Nigeria. What we need are robust institutions, not additional private intermediaries in the collection of government revenue,” he said.

FIRS Responds: Allegations ‘Misleading and Politically Motivated’

The Federal Inland Revenue Service swiftly responded to Atiku’s claims. In a statement, Aderonke Atoyebi, technical assistant on broadcast media to the FIRS chairman, rejected the accusations, calling them “incorrect, misleading, and unnecessarily politicizing an administrative process.”

Atoyebi clarified that Xpress Payments, along with other platforms such as Quickteller, Remita, Etranzact, and Flutterwave, are part of a multi-channel Payment Solution Service Provider (PSSP) framework designed to expand access to tax payment channels. She emphasized that these entities do not act as collection agents in a monopoly sense and do not earn a fee per payment or a share of government revenue.

“All funds collected through these platforms flow directly into the Federation Account without diversion or private custody,” Atoyebi said. She noted that the TSA framework is built to enhance efficiency, increase job creation, promote market growth, and ensure transparency, stating that the process for onboarding new PSSPs is fully competitive and open.

The FIRS official also highlighted ongoing national tax reforms as part of a broader modernization effort to improve revenue systems, stressing that these initiatives are non-partisan and focus on long-term efficiency and transparency.

Observers React

The dispute between Atiku Abubakar and the FIRS underscores broader tensions over public revenue management in Nigeria. While critics of the appointment argue that private intermediaries in revenue systems risk reducing oversight, the FIRS insists that a competitive, multi-platform system strengthens access and accountability.

The conversation also raises questions about the intersection of politics, economic governance, and national security, especially as Nigeria grapples with insecurity and public concern over government spending.

FAQ

Q1: Who is Xpress Payment Solutions?
A: Xpress Payment Solutions is a payment platform recently added to the FIRS’ TSA collection framework, alongside other platforms like Quickteller, Remita, Etranzact, and Flutterwave.

Q2: What is the TSA framework?
A: The Treasury Single Account (TSA) centralizes all government revenue into one account to ensure transparency, improve cash management, and prevent revenue leakages.

Q3: Does Xpress Payments have control over government funds?
A: No. All funds collected via the TSA framework are deposited directly into the Federation Account, and no private intermediary has custody or access to government funds.

Q4: Why is Atiku opposing the appointment?
A: He claims the move revives a Lagos-style revenue model, threatens transparency, and places private actors in a critical government function.

Q5: How has FIRS defended its actions?
A: FIRS emphasized that the system is multi-channel, competitive, transparent, and designed to facilitate tax payment, not create monopolies.