African Export-Import Bank Urges Nigeria to Diversify Economy

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The Office of the Accountant-General of the Federation (OAGF) has confirmed that Remitta remains the Federal Government’s approved payment gateway, contrary to rumors that it had been scrapped. Instead, Remitta will be integrated into a new system called the Treasury Management and Revenue Assurance System (TMRAS), alongside other payment platforms licensed by the Central Bank of Nigeria (CBN).

According to Mr. Bawa Mokwa, Director of Press and Public Relations at the OAGF, “TMRAS is designed to coordinate, streamline, and manage the Federal Government’s revenue collections and payments for all Ministries, Departments, and Agencies (MDAs).” This new system, launched on March 4, 2025, is part of President Bola Tinubu’s directive to enhance revenue assurance and improve budget performance.

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While Remitta remains a secure payment channel, TMRAS will enable other approved Payment Solution Service Providers (PSSPs) to operate, expanding the options for revenue payments. As the OAGF stated, “To clarify, Remitta is still the official payment gateway for government transactions for at least the next two months. However, the government is working on taking full control of the front-end payment system and allowing other CBN-licensed service providers to participate.”

The Accountant-General’s Office reassured Nigerians that Remitta remains valid for all payments to the Federal Government and encouraged users to visit www.fgntreasury.gov.ng for more information.

In related news, the African Export-Import Bank (Afreximbank) has advised Nigeria to reduce its debt burden by investing in agriculture and manufacturing. Nigeria is among the top three most indebted countries in Africa, with eight per cent of the continent’s total external debt. The bank warned that rising external borrowing costs amid tighter global financial conditions pose a significant risk to Nigeria’s economy.

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As Afreximbank noted, “Resource-dependent countries should prioritize economic diversification to reduce vulnerability to commodity price shocks. For example, Nigeria should invest in agriculture and manufacturing, while Angola should develop its renewable energy sector.” The bank also emphasized the need for sustainable borrowing practices, strengthened debt management institutions, and improved transparency and accountability.

The bank emphasized the need for sustainable borrowing practices, strengthened debt management institutions, and improved transparency and accountability. “Countries should adopt sustainable borrowing practices, avoiding excessive reliance on commercial debt. They should also strengthen debt management institutions to improve transparency and accountability,” the bank advised.

Afreximbank’s report, “African Debt Outlook: A Ray of Optimism,” highlighted the increasing role of private creditors in Africa’s debt structure as multilateral institutions like the World Bank and IMF scale back lending. With private creditors offering higher-yield instruments, many African governments, including Nigeria, are turning to Eurobonds to finance fiscal shortfalls.

While this approach provides immediate capital, it also carries risks, as commercial borrowing tends to come with higher interest rates and shorter maturities than concessional loans. The report classified Nigeria’s debt risk as “moderate” alongside South Africa and Morocco.

However, the bank warned of rising external borrowing costs amid tighter global financial conditions. Africa’s average cost of borrowing surged to 8.2 per cent in 2024, significantly higher than the stable 5.4–6.3 per cent range observed between 2008 and 2019.

“African debt exhibits signs of stabilization in the medium term, driven by macroeconomic tailwinds, reduced interest rates, and improved access to capital markets. While challenges remain, the region displays positive fiscal sustainability indicators as it navigates the post-crisis recovery landscape,” the bank noted.

“To sustain this momentum, African economies must systematically reduce fiscal deficits, prioritize efficient public expenditures, enhance tax revenue collection, and bolster transparency in debt management practices,” the bank advised.

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