The Federal Government has halted all physical cash payments for revenue collections across its Ministries, Departments, and Agencies, directing every MDA to transition fully to electronic payment systems and install functional Point of Sale terminals within 45 days.

The directive is contained in four Treasury circulars issued by the Office of the Accountant General of the Federation and signed by Shamseldeen Ogunjimi. The documents state that all payments due to the Federal Government must now be processed exclusively through digitised channels approved by the Treasury and integrated into the Treasury Single Account framework.

In the first circular, titled Enforcement of No Physical Cash Receipt Policy for All Federal Government Revenue Transactions and dated November 24, 2025, the government said it was concerned about the continued use of physical cash payments at revenue collection points despite existing rules mandating electronic payments. The practice, the circular noted, violates established policies and weakens the integrity of the Federal Government e collection and E-payment systems.

The Treasury reiterated that the acceptance of physical cash in naira or any other currency is strictly prohibited for all revenue payable to the Federal Government. MDAs were instructed to immediately notify staff and the public of the new policy and to prominently display “NO PHYSICAL CASH RECEIPT” and “NO CASH PAYMENT” notices at all collection locations. Agencies that still collect cash were ordered to deploy approved POS terminals or other electronic payment devices at all points of transaction within 45 days, with accounting officers held personally responsible for any breach of the directive.

A second circular dated November 25, 2025, addressed the issue of direct deductions from MDA collections through customised payment platforms. The Office of the Accountant General disclosed that some MDAs were using front-end applications linked to various Payment Solution Service Providers, where charges, commissions, and fees were deducted before the balance was remitted into the Treasury Single Account. The practice, according to the Treasury, violates existing financial regulations and has resulted in significant revenue leakages that undermine fiscal transparency.

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The document ordered the immediate cessation of all such deductions and directed that all revenues be remitted in full into designated TSA or Sub TSA accounts without any deductions. It further stated that any service charges must now be paid directly from Treasury accounts rather than deducted at source. 

MDAs were also ordered to regularise all revenue portals and Payment Solution Service Providers with the Treasury on or before December 31, 2025. Agencies operating under public-private partnership arrangements were advised to seek formal guidance, while those that fail to comply risk having their access to the Government Integrated Financial Management Information System and TSA accounts suspended.

In a third circular issued on November 26, 2025, the Treasury announced the adoption of a unified national electronic receipt system known as the Federal Treasury e Receipt. From January 1, 2026, all government payments will be issued an electronic receipt generated centrally by the Federal Treasury. The document said only the FTe R will be recognised as valid proof of payment for federal transactions.

Receipts will be issued through the Revenue Optimisation platform and delivered electronically via channels selected by individual MDAs. The system will provide payers with proof of payment while serving as official confirmation of revenue collection for government entities.

A fourth circular dated November 27, 2025, detailed the rollout of the Revenue Optimisation platform as a service-wide digital framework for revenue management. The platform has been adopted to enhance visibility of government revenues, streamline billing processes, and enable real-time monitoring of MDA accounts. 

According to the Treasury, RevOP provides end-to-end automation for billing and reconciliation, treasury visibility, and integration with the TSA, GIFMIS, the Central Bank of Nigeria, NIBSS, FIRS, and commercial banks authorised to collect government revenue.

Each MDA has been directed to nominate three officers within seven working days to serve as RevOP focal personnel and to ensure that all existing financial management systems are integrated with the new platform. 

The Treasury also stated that only Payment Solution Service Providers licensed by the Central Bank, recommended by NITDA, and approved by the Office of the Accountant General will be permitted to operate. All currently engaged providers must connect to the platform to allow for the instant harmonisation of government collections.

MDAs were further instructed to submit full details of all local and foreign currency accounts and complete compliance procedures within 60 days. Ogunjimi directed accounting officers, finance directors, and internal auditors to circulate the circulars widely and enforce strict compliance.

The payment reforms mark one of the most comprehensive changes to federal revenue administration since the introduction of the Treasury Single Account over a decade ago.

Earlier in March 2025, the Federal Government unveiled the Treasury Management and Revenue Assurance System, designed to centralise and manage collections and payments across MDAs, including donor funds, trust funds, social security funds, and special funds. 

The first phase covered naira transactions only, enabling MDAs and the Treasury to generate bank statements, track account balances, and automate deductions and remittances for taxes such as Value Added Tax, Withholding Tax, and Stamp Duty linked to contractor and vendor payments.

The second phase of the platform, expected to commence from June 1, 2025, was designed to extend coverage to foreign currency collections and integrate directly with Enterprise Resource Planning systems used by MDAs.

Meiza Nigeria