The Federal Government has announced a ban on the use of physical cash for revenue payments, instructing all Ministries, Departments, and Agencies (MDAs) to install Point of Sale (POS) terminals within 45 days. This directive is part of a series of sweeping changes aimed at modernizing and streamlining federal revenue administration.
The new regulations are outlined in four Treasury circulars issued by the Office of the Accountant-General of the Federation (OAGF). These circulars mandate that all payments to the Federal Government must be made electronically through channels approved by the Treasury.
Ban on Physical Cash
The core of the new policy is the prohibition of physical cash transactions.
- Electronic Payments Mandatory: All revenue collections for the Federal Government must now be processed electronically.
- No Exceptions: The acceptance of physical cash, whether in Naira or other currencies, is strictly forbidden.
- POS Deployment: MDAs currently accepting cash are required to deploy functional POS terminals or other approved electronic devices at all revenue collection points within 45 days.
- Compliance Enforcement: Accounting officers will be held responsible for any breaches of this directive.
This move aims to strengthen the integrity of the Federal Government’s e-collection and e-payment systems, which officials say have been undermined by the continued use of physical cash. MDAs are required to sensitize staff and the public about the ban and display prominent notices stating “NO PHYSICAL CASH RECEIPT” and “NO CASH PAYMENT” at all revenue collection points.
Cessation of Direct Deductions
A second circular addresses unauthorized deductions made by MDAs through customized payment platforms.
- End to Unauthorized Deductions: MDAs are prohibited from using front-end applications linked to Payment Solution Service Providers (PSSPs) that deduct charges, fees, and commissions before remitting the net amount to the Treasury Single Account (TSA).
- Revenue Leakage Concerns: The Treasury has observed that these practices have led to significant revenue leakages, hindering the government’s efforts to achieve fiscal transparency.
- Full Remittance Required: All revenues must be remitted to designated TSA or Sub-TSA accounts “without any deduction(s).”
- Treasury-Funded Fees: Any fees arising from service provision must now be paid directly from Treasury accounts rather than being deducted at source.
- Regularization of Portals: All existing portals and PSSPs used for revenue collection must be regularized with the OAGF by December 31, 2025.
- PPP Guidance: MDAs involved in public-private partnerships (PPPs) are advised to seek further guidance from the Treasury.
- Sanctions for Non-Compliance: MDAs that fail to comply with these regulations risk having their access to the Government Integrated Financial Management Information System (GIFMIS) and TSA accounts disabled.
Federal Treasury e-Receipt (FTe-R)
The government is introducing a mandatory national e-receipt system.
- Unified Electronic Receipt: Starting January 1, 2026, the Federal Treasury will issue a unified electronic receipt (FTe-R) for all Government payments.
- Official Proof of Transaction: Only the centrally-issued FTe-R will be recognized as valid proof of federal transactions.
- Revenue Optimisation Platform: The receipts will be issued through the Revenue Optimisation platform and delivered electronically via channels selected by each MDA.
- Dual Purpose: The FTe-R will serve both as a receipt for the payer and as official proof of revenue collection for the government entity.
Revenue Optimisation (RevOP) Platform
The final circular details the rollout and implementation guidelines for the Revenue Optimisation (RevOP) platform.
- Digital Platform for Revenue Management: The government is deploying a digital platform to improve visibility of revenue collections, streamline billing, and allow real-time monitoring of accounts held by MDAs.
- Service-Wide Platform: RevOP has been adopted as the approved service-wide platform for end-to-end revenue optimisation.
- Unified Automation: It will provide unified automation of billing, reconciliation, and treasury visibility.
- Integration with Key Systems: RevOP will integrate with TSA, GIFMIS, CBN, NIBSS, FIRS, and revenue-collecting banks.
- MDA Focal Personnel: Each MDA is required to nominate three officers to serve as RevOP focal personnel within seven working days and ensure integration of existing financial systems with the platform.
- Licensed PSSPs Only: Only Payment Solution Service Providers licensed by the Central Bank, recommended by NITDA, and approved by the OAGF will be allowed to operate.
- Harmonization of Collections: All PSSPs currently used by MDAs must connect to the platform for “instant harmonization of Government collections.”
- Account Details Submission: MDAs are required to submit full details of all local and foreign currency accounts and ensure compliance within 60 days.
These measures are intended to enhance transparency, accountability, and efficiency in federal revenue administration. The OAGF has directed accounting officers, finance directors, and internal auditors to ensure strict compliance with these directives.
These changes build upon earlier efforts to streamline federal revenue management. In March 2025, the government unveiled the Treasury Management & Revenue Assurance System, designed to manage revenue collections and payments across MDAs, including those benefiting from donor funds, trust funds, social security funds, and special funds.
