FIRS, Xpress Payments and the Rising Fear of a National Revenue Cartel
Nigeria’s national mood is tense. The country is facing deep economic hardship, worsening insecurity, declining public trust, and a widening gap between citizens and their government. Yet, in the midst of this fragility, a quiet administrative action by the Federal Inland Revenue Service (FIRS) has triggered a storm of public concern and renewed debate over who truly controls Nigeria’s revenue system.
The controversy began after FIRS silently appointed Xpress Payment Solutions Limited—a fast-growing Nigerian fintech firm—as a Treasury Single Account (TSA) collecting agent. This gives the company authority to process federal tax payments through the TaxPro Max platform. With this approval, taxpayers can now remit Company Income Tax, Value Added Tax, Withholding Tax and other federal payments through XpressPay or the in-branch e-Cashier solution.
What initially appeared to be a harmless digital upgrade quickly evolved into a national debate:
Is Nigeria witnessing the quiet re-emergence of a revenue cartel—this time on a federal scale?
A Silent Gatekeeper Appears
Founded in 2016, Xpress Payments is well known in fintech circles for secure payment gateway services, switching infrastructure, and enterprise financial solutions. Its Acting Managing Director, Wale Olayisade, described the appointment as a milestone, promising ease, speed, and transparency for taxpayers.
But the public response was far from calm. Nigerians immediately raised key questions:
Why was this appointment made quietly?
Were there open bids or competitive procurement processes?
What does Xpress Payments offer that existing TSA channels—like Remita—do not already provide?
What are the contract terms?
Why is a sensitive national function being handed to a private company during a period of strained public trust?
The government’s silence has only deepened suspicion.
Atiku Abubakar Reacts: “This Is Lagos-Style State Capture”
Former Vice President Atiku Abubakar issued one of his strongest statements in years, accusing the Federal Government of attempting to replicate the controversial Lagos revenue model dominated for years by Alpha Beta—a company long linked to allegations of monopoly, opacity, and political capture.
According to Atiku:
“This is the resurrection of the Alpha Beta revenue cartel. What we are witnessing now is an attempt to nationalise that template.”
He described the move as dangerous, especially at a time when Nigerians are grieving insecurity and economic hardship.
His five demands were clear:
Immediate suspension of the Xpress Payments appointment
Full disclosure of contract terms and beneficiaries
Independent audit of TSA operations
A legal ban on private proxies controlling public revenue
A national priority shift toward security and transparent governance
He concluded:
“Nigeria’s revenues are not political spoils. They are the lifeblood of our national survival.”
The Ghost of Alpha Beta: Why Nigerians Are Worried
The controversy echoes past concerns of private-sector dominance over public revenue. For many Nigerians, the fear is simple:
When private companies control revenue collection, transparency dies.
When revenue systems become monopolized, corruption thrives.
Specific risks include:
Monopoly power over revenue systems
Inflated service fees
Data privacy breaches
Political weaponisation of revenue information
Dependency on private contractors
Centralised control of sensitive national data
Each risk poses real long-term implications for economic stability.
FIRS: “XpressPay Is Only an Additional Option”
To its credit, the FIRS maintains that Xpress Payments is merely one additional channel, not a replacement for Remita or other providers. The agency insists the goal is to expand taxpayer options and modernise digital tax infrastructure.
However, Nigerians are not responding to the announcement—they are responding to the pattern:
Sudden appointments
Silence around procurement
Political undertones
Private-sector centralisation of public revenue
Timing that coincides with economic desperation
The issue is not Xpress Payments itself, but the opacity around decision-making.
Meanwhile, Nigeria Prepares for 2026’s Biggest Tax Reforms
While controversy grows, the Presidential Fiscal Policy and Tax Reforms Committee, led by Taiwo Oyedele, is finalising sweeping tax changes effective January 2026.
1. Drastic Reduction in Tax Burden
Workers earning below ₦800,000 yearly: zero personal income tax
VAT exemption for food, education, healthcare, and public transport
Small businesses (≤ ₦100m turnover): zero corporate tax, zero capital gains tax, exemption from the 4% development levy
2. Consolidation of Multiple Tax Laws
A single harmonised tax code will replace CITA, PITA, VAT, CGT and others—ending duplication and confusion.
3. Modern Digital Tax Base
Taxation will now cover digital transactions and virtual asset profits.
4. Incentives for Exporters
Profits from goods exported will be tax-free if proceeds are legally repatriated.
5. Strengthened Institutions
The Nigeria Revenue Service (NRS) will become the sole federal tax collector, while a new Tax Ombudsman will handle disputes.
6. Presidential Oversight
President Tinubu has set up the National Tax Policy Implementation Committee (NTPIC) chaired by Joseph Tegbe to ensure smooth rollout.
So Why Are Nigerians Still Worried?
Because tax reform does not automatically equal public trust.
While Nigerians welcome lower taxes and simpler processes, many fear that the control of tax collection is being quietly moved from government institutions to private companies.
The Key Risks:
Over-centralisation of tax gateways
Potential de facto monopoly
Data privacy and national security concerns
Political capture of revenue systems
Middlemen profiting from public revenue
Erosion of trust leading to lower compliance
What Nigeria Needs Now: Radical Transparency
To rebuild trust, the government must urgently:
Publish all contract details (fees, terms, duration, beneficiaries)
Conduct an independent audit of all TSA payment providers
Prevent monopolies by capping any provider’s market share
Strengthen FIRS capacity, reducing dependence on private contractors
Enact a legal framework to regulate digital tax contractors
Anything less keeps Nigeria vulnerable.
A Nation at a Revenue Crossroad
Nigeria stands at a defining moment. The 2026 reforms offer hope—lower taxes, modern systems, less harassment. But that hope is threatened by the perception that tax collection is being quietly privatised.
The contradiction is dangerous:
The government promises relief,
but citizens fear revenue capture.
Until transparency returns, the Xpress Payments debate will not disappear. It has become a test of Nigeria’s commitment to:
Accountability
Institutional integrity
Democratic oversight
Protection of public revenue
A nation cannot modernise its tax system while leaving its revenue gateways in the shadows.
The question Nigerians now ask is simple, painful, and urgent:
Who is truly controlling Nigeria’s money?
Blaise U.,
Journalist & PR Professional, Lagos
blaise.udunze@gmail.com
