Former Vice President Atiku Abubakar has publicly opposed the Federal Inland Revenue Service’s (FIRS) recent appointment of Xpress Payment Solutions Limited as a new collecting agent under the Treasury Single Account (TSA) framework. The move, announced by FIRS on November 20, has sparked a heated debate over transparency, privatization, and the role of private intermediaries in Nigeria’s revenue collection system.
FIRS integrated Xpress Payment Solutions into its TaxPro Max portal, allowing taxpayers to generate a Payment Reference Number (PRN) and remit taxes such as Company Income Tax (CIT), Value Added Tax (VAT), and Withholding Tax (WHT) through XpressPay’s online gateway or its e-Cashier at bank branches.
Xpress Payment, incorporated in 2016, is licensed as a Payment Terminal Service Provider (PTSP) and handles electronic collections, bill payments, and disbursements for financial institutions.
FIRS Acting Managing Director Wale Olayisade emphasized that the infrastructure was fully deployed to manage sensitive federal collections.
The agency clarified that Xpress joins existing platforms like Remita and e-Tranzact, which focus on multi-channel payment collection and electronic invoicing respectively, enhancing efficiency and user choice within a competitive ecosystem of Payment Solution Service Providers (PSSPs).
Despite this, Atiku described the appointment as a “quiet” policy shift, carried out without public consultation, legislative oversight, or stakeholder engagement.
He demanded the immediate suspension of the appointment, a public inquiry, disclosure of contractual terms, and a comprehensive audit of TSA operations.
The History on Alpha Beta
Alpha Beta Consulting LLP was established in 1999 as a private tax consultant for Lagos State under then-Governor Bola Tinubu, with the mandate to modernize revenue collection using technology.
At the time, Lagos’s Internally Generated Revenue (IGR) was around N10 billion annually, hindered by inefficiencies and leakages. Alpha Beta’s electronic systems reportedly raised collections to over N50 billion by 2010, earning the firm a 10–13% commission, totaling more than N150 billion in fees by 2020, according to a former managing director.
The success, however, was marred by scandal. In 2017, ex-MD Oladapo Apara petitioned the Economic and Financial Crimes Commission (EFCC), alleging that Alpha Beta evaded N30 billion in taxes and accusing Tinubu of diverting $44.3 million through shell companies.
Bank records later revealed billions transferred to entities linked to TVC Communications, owned by Tinubu’s family, raising money-laundering concerns.
Critics, including PDP chieftain Olabode George, condemned the arrangement as a “sacrilegious” privatization, turning public revenue into a private tollbooth.
Despite lawsuits seeking Tinubu’s testimony and ongoing investigations, Alpha Beta’s contract continued until 2022, when Lagos adopted a new system.
Apara, who had endorsed Tinubu in 2023 after withdrawing his complaints, later reignited the controversy. The episode remains a cautionary tale of opaque revenue deals, with analysts warning that its “ghost” continues to influence federal tax reforms.
Why Atiku is Comparing Xpress Payment and Alpha Beta
Atiku draws a direct parallel between Xpress Payments and Alpha Beta, warning that the FIRS decision risks reviving what he calls the “Alpha Beta revenue cartel” that dominated Lagos during and after Tinubu’s tenure.
He criticizes the move for attempting to nationalize a “Lagos-style” model, inserting private intermediaries as a kind of “toll gate” around public revenue, potentially channeling funds to vested interests and weakening state oversight.
Opacity is central to his concern. Both Xpress Payments and Alpha Beta were reportedly appointed in a rushed, non-transparent manner, bypassing competitive bidding and stakeholder consultation.
Atiku also questions whether Xpress adds any real value compared with existing platforms like Remita, echoing past criticisms that Alpha Beta created an unnecessary monopoly despite boosting revenue.
He frames the arrangement as “state capture disguised as digital innovation,” suggesting a small circle, likely connected to Tinubu’s allies that could control federal revenue inflows, just as Lagos’s IGR gains allegedly enriched insiders.
Through this comparison, Atiku highlights a pattern of elite continuity, warning that Nigeria risks functioning more like a private holding company than a public republic.
His critique goes beyond partisan politics, relying on Alpha Beta’s documented controversies to underscore potential conflicts of interest in the selection of Xpress Payments.
Why Atiku Thinks It Will Not Work
Atiku argues that the Xpress Payments model is fundamentally flawed because it elevates private intermediaries over institutional reform, creating opportunities for corruption in an already fragile economy.
He highlights that the lack of transparency, no disclosed fees or selection criteria, mirrors Alpha Beta’s opaque system, which allegedly allowed revenue diversions.
The timing, he notes, is particularly troubling. With insecurity rising and public trust strained, government focus should be on security and citizen welfare, not expanding private revenue channels.
Atiku warns this move represents “creeping privatization,” risking the diversion of resources from essential services and politicizing tax collection at a moment when broad-based reform and stakeholder engagement are crucial.
He calls for legal measures to ban such intermediaries, advocating for strong, FIRS-led systems grounded in constitutional principles rather than quick fixes that invite cartels.
Without suspension and thorough scrutiny, he predicts public trust will erode, and fiscal modernization will stall.
The clash between Atiku and FIRS highlights a critical tension in Nigeria’s revenue administration: balancing digital innovation and efficiency with transparency, accountability, and the prevention of elite capture.
Whether this dispute will lead to formal investigations or fade as political noise remains uncertain, but it underscores the challenges of modernizing public finance in a highly scrutinized and politically charged environment.
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