The Federal Government has prohibited the use of physical cash for all revenue payments to Ministries, Departments, and Agencies (MDAs), directing them to deploy Point of Sale (PoS), terminals and other approved electronic payment devices within 45 days.
The measure marks one of the most extensive overhauls of Nigeria’s public revenue administration since the introduction of the Treasury Single Account (TSA), a decade ago.
The directive is contained in four new Treasury circulars issued by the Office of the Accountant-General of the Federation (OAGF), and obtained on Monday.
In the documents, the Accountant-General of the Federation, Shamseldeen Ogunjimi, declared that all payments to the Federal Government must now be made electronically and routed strictly through Treasury-approved channels integrated into the TSA.
“The continued acceptance of physical cash is prohibited,” the circular warned.
Government Alarmed at Persistent Cash Collections
The first circular, dated November 24, 2025, titled “Enforcement of No Physical Cash Receipt Policy for All Federal Government Revenue Transactions,” expressed concern that many MDAs were still collecting cash at revenue points despite existing e-payment rules.
According to the OAGF, continued cash collection undermines the government’s cashless policy and “weakens the integrity of Federal Government e-collection and e-payment systems.” It therefore directed that:
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All MDA payment points must immediately display notices reading “NO PHYSICAL CASH RECEIPT” and “NO CASH PAYMENT.”
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Every MDA that still collects cash must, within 45 days, deploy functional PoS terminals or other electronic devices.
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Accounting officers will be held personally liable for any breach.
The circular further mandated all MDAs and Federal Government-Owned Enterprises to embark on staff and public sensitisation to ensure a smooth transition to cashless revenue collection.
Second Circular Targets Unauthorised Deductions by MDAs
A second circular, issued on November 25, 2025 and titled “Immediate Cessation of Direct Deductions on MDAs’ Dedicated Collection Systems,” addressed another major loophole: the use of customised payment portals through which fees, charges, and commissions were deducted before revenue reached the TSA.
The document noted that many MDAs had integrated front-end applications belonging to various Payment Solution Service Providers (PSSPs), enabling unauthorised deductions that created “significant revenue leakages.”
To curb the abuse, the circular ordered that:
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All revenue must be remitted in full into TSA or Sub-TSA accounts — without any deduction(s).
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Any service charges must now be settled directly from Treasury accounts, not removed at source.
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All existing MDA payment portals and PSSP arrangements must be regularised with the OAGF on or before December 31, 2025.
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MDAs in Public-Private Partnership arrangements must seek guidance from the Treasury.
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Non-compliant MDAs risk losing access to the Government Integrated Financial Management Information System (GIFMIS), and TSA accounts.
Unified National E-Receipt System Begins January 1, 2026
The third circular, dated November 26, 2025, introduced the Federal Treasury e-Receipt (FTe-R) — a unified digital receipt that will become the sole recognised proof of payment for all Federal Government transactions.
“With effect from 1st January 2026, the Treasury will commence the issuance of FTe-R,” the circular stated.
The e-receipts will be generated through the Revenue Optimisation (RevOP), platform and delivered electronically via channels chosen by each MDA. The FTe-R will serve both as:
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An official receipt for citizens and businesses, and
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A certified record of government revenue for the relevant MDA.
No other receipt format will be valid from January 2026.
Fourth Circular: Rollout of the RevOP Digital Revenue Platform
The fourth circular, dated November 27, 2025 and titled “Rollout and Implementation Guidelines on the Adoption of the Revenue Optimisation (RevOP) Platform,” formally launched the government’s new digital architecture for real-time revenue monitoring.
The RevOP platform aims to:
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Improve visibility and transparency of Federal Government revenue,
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Streamline billing and reconciliation,
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Provide real-time oversight of MDA accounts, and
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Integrate seamlessly with TSA, GIFMIS, CBN, NIBSS, FIRS, and authorised banks.
To operationalize the system, the circular directed MDAs to:
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Nominate three RevOP focal officers within seven working days,
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Integrate all existing MDA financial and payment systems with RevOP, and
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Ensure that only CBN-licensed, NITDA-recommended, and OAGF-approved PSSPs are used.
MDAs must also submit details of all local and foreign currency accounts within 60 days.
Building on Earlier 2025 Treasury Reforms
The new directives build on the Treasury reforms launched earlier in 2025, when the Federal Government unveiled the Treasury Management & Revenue Assurance System, designed to centralise payments and revenue administration across all MDAs — including those handling donor funds, trust funds, and special allocations.
Phase One (ongoing):
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Covers naira-denominated payments and collections,
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Enables generation of government bank statements,
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Allows automated tax deductions (VAT, WHT, Stamp Duty), from vendor and contractor payments.
Phase Two, scheduled for June 1, 2026, will extend coverage to:
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Foreign exchange transactions, and
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Integration with MDA Enterprise Resource Planning (ERP) systems.
What the New Policy Means for Nigerians
The new cashless directive reshapes how citizens and businesses interact with federal institutions:
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Cash payments at MDA offices are now banned.
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All revenue-related transactions must be made electronically.
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PoS terminals and digital channels will become the primary payment tools.
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MDAs must issue only Treasury-approved e-receipts.
The reforms are expected to significantly reduce corruption, eliminate opaque charges, curb revenue leakages, and deepen transparency — but they also require robust infrastructure and nationwide compliance to succeed.
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