The Nigerian Federal Government has imposed a comprehensive ban on physical cash payments for all revenue due to Ministries, Departments, and Agencies (MDAs), requiring them to deploy Point of Sale (POS) terminals or approved electronic devices at all collection points within 45 days.
This directive forms part of four Treasury circulars issued by the Office of the Accountant-General of the Federation (OAGF), signed by Accountant-General Shamseldeen Ogunjimi, aimed at enforcing full electronic payments through the Treasury Single Account (TSA). The measures, represent significant reforms to federal revenue administration, building on prior initiatives like the TSA introduced a decade ago and the Treasury Management & Revenue Assurance System unveiled in March 20.
The first circular, titled “Enforcement of No Physical Cash Receipt Policy for All Federal Government Revenue Transactions” and dated November 24, 2025, expresses alarm over the persistent physical cash collections at MDA points despite existing e-payment rules. It states: “All payments to government must be made through electronic channels approved by the Office of the Accountant-General of the Federation and integrated into the appropriate Treasury Single Account,” while prohibiting “collections and/or acceptance of physical cash (in Naira or other currencies) for all revenues due to the Federal Government.” MDAs must immediately sensitize staff and the public, display notices such as “NO PHYSICAL CASH RECEIPT” and “NO CASH PAYMENT” at revenue points, and ensure accounting officers bear responsibility for breaches.
A second circular dated November 25, 2025, titled “Immediate Cessation of Direct Deductions on MDAs’ Dedicated Collection Systems,” targets unauthorized deductions by MDAs via custom payment platforms linked to Payment Solution Service Providers (PSSPs). The document notes that such practices cause “significant revenue leakages, which undermine the Federal Government’s efforts to achieve fiscal transparency,” ordering that “all revenues must be remitted to designated TSA or Sub-TSA accounts ‘without any deduction(s).”
It mandates regularization of all existing portals with OAGF by December 31, 2025, warns of disabling access to Government Integrated Financial Management Information System (GIFMIS) and TSA for non-compliant MDAs, and advises public-private partnership entities to seek Treasury guidance.
The third circular, “Adoption of the Federal Treasury e-Receipt (FTe-R)” dated November 26, 2025, mandates a national e-receipt system starting January 1, 2026, with the Treasury issuing unified electronic receipts via the Revenue Optimisation (RevOP) platform. It declares: “With effect from 1st January 2026, the Treasury will commence the issuance of FTe-R,” which will serve as valid proof for payers and government entities, delivered electronically through MDA-selected channels.
The fourth circular, dated November 27, 2025, and titled “Rollout and Implementation Guidelines on the Adoption of the Revenue Optimisation (RevOP) Platform,” rolls out a digital system for enhanced revenue visibility, billing streamlining, and real-time monitoring of MDA accounts. It integrates with TSA, GIFMIS, Central Bank of Nigeria (CBN), Nigeria Inter-Bank Settlement System (NIBSS), Federal Inland Revenue Service (FIRS), and banks, requiring MDAs to nominate three RevOP focal officers within seven days and submit details of all currency accounts within 60 days. Only CBN-licensed, NITDA-recommended, and OAGF-approved PSSPs may operate, with all current ones connecting for instant collection harmonization.
These reforms align with ongoing CBN and Corporate Affairs Commission (CAC) efforts to regulate POS operations, including geo-tagging mandates and warnings against unregistered terminals, amid pushes for digital payments to curb leakages and enhance transparency. Ogunjimi directed accounting officers, finance directors, and auditors to circulate the circulars widely and ensure compliance, positioning the changes as the most extensive since TSA’s inception.
