The Federal Government has officially prohibited the use of physical cash for all revenue payments to Ministries, Departments, and Agencies (MDAs), mandating that Point of Sale (POS) terminals or other approved electronic payment systems be deployed within 45 days.
The directive, part of four Treasury circulars issued by the Office of the Accountant-General of the Federation (OAGF), was obtained by The PUNCH on Monday. Accountant-General Shamseldeen Ogunjimi said all payments to the Federal Government must now be made electronically and routed through channels approved by the Treasury.
“All payments to government must be made through electronic channels approved by the OAGF and integrated into the appropriate Treasury Single Account,” one of the circulars read, warning that continued acceptance of physical cash is strictly prohibited.
The first circular, titled Enforcement of No Physical Cash Receipt Policy for All Federal Government Revenue Transactions and dated November 24, 2025, expressed concern over the continued collection of cash at MDA revenue points, despite existing e-payment rules and the Treasury Single Account (TSA) framework.
“Physical cash collection violates extant policies and weakens the integrity of Federal Government e-collection and e-payment systems,” the circular stated. It directed MDAs and federal government-owned enterprises to sensitise staff and the public on the ban and to display notices reading No Physical Cash Receipt and No Cash Payment at all revenue collection points.
The circular further ordered MDAs to deploy functional POS terminals or approved electronic devices within 45 days, warning that accounting officers would be held responsible for any breaches.
A second circular, dated November 25, 2025, addressed unauthorised deductions by MDAs through customised payment platforms. It noted that some agencies were using front-end applications linked to Payment Solution Service Providers (PSSPs) to deduct charges, fees, and commissions before remitting the net amount to the TSA, a practice that undermines fiscal transparency.
The circular mandated an immediate halt to such deductions, requiring all revenue to be remitted to designated TSA or Sub-TSA accounts without deductions. Fees arising from service provision must now be paid directly from Treasury accounts. It also instructed MDAs to regularise all portals and PSSPs with the OAGF by December 31, 2025. Non-compliance would result in the suspension of access to the Government Integrated Financial Management Information System (GIFMIS) and TSA accounts.
The third circular, dated November 26, 2025, introduced the Federal Treasury e-Receipt (FTe-R), a unified electronic receipt system set to take effect on January 1, 2026. The FTe-R, to be issued through the Revenue Optimisation (RevOP) platform, will serve as the official proof of all federal transactions.
The fourth circular, dated November 27, 2025, outlined the rollout and implementation of the RevOP platform, aimed at improving revenue visibility, streamlining billing, and enabling real-time monitoring of MDA accounts. MDAs are required to nominate three officers as RevOP focal personnel within seven working days and ensure integration of existing financial systems with the platform. Only CBN-licensed PSSPs approved by OAGF and recommended by NITDA are permitted to operate under the system.
All MDAs are also mandated to submit full details of all local and foreign currency accounts and ensure compliance within 60 days. The measures represent the most significant overhaul of federal revenue administration since the introduction of the TSA over a decade ago.
Earlier in March 2025, the Federal Government unveiled the Treasury Management & Revenue Assurance System, designed to streamline federal revenue collections and payments across MDAs, including funds from donors, trust funds, social security, and special funds. The first phase, covering naira transactions, enables automatic tracking, deduction, and remittance of taxes, including VAT, Withholding Tax, and Stamp Duty. The second phase, scheduled for June 1, 2025, will integrate foreign exchange transactions with MDA Enterprise Resource Planning systems.
