The Federal Government has moved to eliminate physical cash transactions in revenue collection, directing all Ministries, Departments, and Agencies to switch fully to electronic payments. MDAs have been given a 45 day deadline to deploy Point of Sale terminals and other approved e payment tools at all their revenue points.
The directive is contained in four separate Treasury circulars issued by the Office of the Accountant General of the Federation and sighted on Monday. In the documents, the Accountant General, Shamseldeen Ogunjimi, emphasised that all government revenues must now pass strictly through approved electronic channels linked to the Treasury Single Account.
According to the circular, receiving or making payments in physical cash, whether in naira or foreign currency, has been outlawed in all federal revenue transactions. The Treasury warned that cash based collections undermine transparency and weaken the integrity of government e payment infrastructure.
MDAs and government enterprises have been instructed to immediately notify staff and the general public about the new directive and to place visible signs at all payment locations, clearly stating “NO PHYSICAL CASH RECEIPT” and “NO CASH PAYMENT.” Any agency still receiving cash must install functional POS terminals within 45 days, with accounting officers held personally liable for violations.
A second circular, dated November 25, 2025, addressed the unauthorised deductions made by some MDAs through customised payment platforms linked to private service providers. The Treasury observed that fees and commissions were being deducted before funds reached the TSA, causing major revenue losses. It ordered an immediate stop to the practice and directed that all revenues must now be remitted in full into TSA or sub accounts without any form of deduction. Fees for service providers will now be paid directly from Treasury accounts.
All existing payment portals and service providers must regularise their operations with the OAGF on or before December 31, 2025, or risk losing access to the Treasury system.
A third circular announced the introduction of a single national e receipt, known as the Federal Treasury e Receipt (FTe R). Beginning January 1, 2026, this electronic receipt will be the only recognised proof of federal government payment and will be issued via the Revenue Optimisation (RevOP) platform.
The fourth circular finalised rollout guidelines for RevOP, a comprehensive digital platform the government has adopted to strengthen monitoring, billing, reconciliation, and real time visibility of revenue collected by MDAs. The platform will integrate with the TSA, GIFMIS, FIRS, CBN, NIBSS, and revenue collecting banks.
Each MDA is required to nominate three officers as RevOP focal points within seven working days and ensure full integration of its financial systems. Only CBN licensed and NITDA recommended payment service providers approved by the Accountant General will be permitted to operate under the new regime.
Furthermore, all MDAs must submit details of every local and foreign currency account linked to revenue collection and comply fully within 60 days.
These measures mark one of the most significant overhauls of federal revenue administration since the Treasury Single Account was launched ten years ago.
Earlier this year, the government rolled out a new digital platform, the Treasury Management and Revenue Assurance System, intended to streamline the management of federal revenue collections. Its first phase focuses on managing naira transactions, enabling real time monitoring of balances, automated tax deductions for payments to contractors and vendors, and improved transparency in government finances.
A second phase, scheduled for June 2025, will expand coverage to foreign currency transactions and integration with MDAs’ ERP systems.
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