The Federal Government has directed all Ministries, Departments, and Agencies to stop collecting revenue in physical cash and switch entirely to electronic payment channels, as part of sweeping reforms aimed at tightening fiscal controls and blocking revenue leakages.
Under the new directive, MDAs have been given 45 days to install Point of Sale terminals and other approved electronic payment tools at all revenue collection points nationwide.
The policy was conveyed through four Treasury circulars issued by the Office of the Accountant-General of the Federation.
The circulars, signed by the Accountant-General, Shamseldeen Ogunjimi, state that all payments due to the Federal Government must now be made electronically and integrated into the Treasury Single Account.
According to the OAGF, the continued collection of cash by some MDAs violates existing financial regulations and weakens government revenue systems.
“All revenues due to the Federal Government must be collected through electronic channels approved by the Treasury and fully integrated into the TSA. The acceptance of physical cash is no longer permitted,” the circular stated.
The government further warned that any MDA that continues to receive cash payments would be in breach of federal financial policies.
“The collection or acceptance of physical cash, whether in naira or foreign currency, for government revenue is strictly prohibited,” the directive added.
As part of enforcement measures, MDAs and government-owned enterprises have been instructed to sensitise staff and the public on the new policy and prominently display notices such as ‘No Physical Cash Receipt’ and ‘No Cash Payment’ at all revenue collection outlets.
Accounting officers of defaulting agencies, the Treasury noted, will be personally held accountable for non-compliance.
Meanwhile, in a separate circular, the Federal Government ordered the immediate stoppage of unauthorised deductions by MDAs through customised payment platforms operated by Payment Solution Service Providers.
The Treasury observed that some agencies deducted charges and commissions before remitting funds to the TSA, a practice it said had led to significant revenue losses.
“All government revenues must be paid in full into designated TSA or Sub-TSA accounts without deductions,” the circular said, stressing that service fees should only be settled directly from Treasury accounts.
The OAGF also announced the introduction of a unified Federal Treasury e-Receipt (FTe-R), which will become the only recognised proof of payment for federal transactions from January 1, 2026.
“With effect from January 1, 2026, only the centrally issued Federal Treasury e-Receipt will be recognised as valid evidence of payment to the Federal Government,” the Treasury said.
The receipts will be generated through the Revenue Optimisation (RevOP) platform, a new digital system deployed to enhance transparency, automate billing, and allow real-time monitoring of government revenues.
Under the RevOP framework, all MDAs are required to nominate focal officers, integrate their existing systems, and ensure that only payment providers licensed by the Central Bank of Nigeria and approved by relevant authorities are used.
The government warned that MDAs that fail to comply risk sanctions, including being denied access to the Government Integrated Financial Management Information System and TSA accounts.
