The Federal Government has prohibited the use of physical cash for revenue payments and directed all Ministries, Departments, and Agencies to install Point of Sale terminals within 45 days.
The ban was announced in four Treasury circulars issued by the Office of the Accountant-General of the Federation, Shamseldeen Ogunjimi, and obtained on Monday.
According to the circulars, all payments to the Federal Government must now be made electronically and routed through channels approved by the Treasury Single Account.
“All payments to government must be made through electronic channels approved by the Office of the Accountant-General of the Federation and integrated into the appropriate Treasury Single Account,” one of the circulars read, stressing that the acceptance of physical cash is no longer allowed.
“In view of the above, it is hereby directed that collections and/or acceptance of physical cash (in Naira or other currencies) for all revenues due to the Federal Government is strictly prohibited. All revenue collections, for and on behalf of the Federal Government, must be made via electronic processing.”
The first circular, titled Enforcement of No Physical Cash Receipt Policy for All Federal Government Revenue Transactions and dated November 24, 2025, noted that despite existing rules on e-payment and the TSA, some MDAs still collected cash. It warned that such practices violated policy guidelines and weakened the integrity of the government’s e-collection systems.
MDAs and Federal Government-owned enterprises were ordered to sensitise staff and the public and display notices reading “NO PHYSICAL CASH RECEIPT” and “NO CASH PAYMENT” at all collection points. MDAs currently collecting cash were given 45 days to deploy POS terminals or other approved electronic payment devices. Accounting officers will be held responsible for any violation.
A second circular, dated November 25, 2025, titled Immediate Cessation of Direct Deductions on MDAs’ Dedicated Collection Systems, addressed unauthorised deductions made on customised MDA payment platforms. It said some agencies were deducting charges and commissions before remitting funds to the TSA, a practice that had caused “significant revenue leakages.”
The document ordered that all revenues must be remitted to TSA accounts “without any deduction(s),” adding that any service-related fees must now be paid directly from Treasury accounts. All existing MDA portals and Payment Solution Service Providers must regularise operations with the OAGF by December 31, 2025.
A third circular, dated November 26, 2025, titled Adoption of the Federal Treasury e-Receipt (FTe-R), introduced a unified e-receipt system. With effect from January 1, 2026, the Treasury will issue a national electronic receipt through the Revenue Optimisation platform. The FTe-R will serve as valid proof of all federal financial transactions.
The fourth circular, dated November 27, 2025, titled Rollout and Implementation Guidelines on the Adoption of the Revenue Optimisation (RevOP) Platform, announced the deployment of a digital platform to enhance revenue visibility, streamline billing, and enable real-time monitoring of government accounts. RevOP will integrate with TSA, GIFMIS, the Central Bank of Nigeria, NIBSS, FIRS, and revenue-collecting banks.
MDAs are required to nominate three officers as RevOP focal personnel within seven working days and ensure their systems are integrated with the platform. Only CBN-licensed PSSPs recommended by NITDA and approved by the OAGF will be permitted to operate.
The circulars also directed MDAs to submit details of all local and foreign currency accounts and ensure compliance within 60 days.
All four circulars were signed by Ogunjimi, who urged accounting officers, finance directors, and internal auditors to ensure wide circulation and strict compliance.
The measures are among the most significant changes to federal revenue administration since the introduction of the TSA.
In March 2025, the Federal Government unveiled the Treasury Management & Revenue Assurance System, aimed at streamlining revenue collection and payments across MDAs, covering donor funds, trust funds, social security funds, and special funds. The first phase focused on naira operations, while the second phase, expected to begin on June 1, 2025, will cover foreign exchange collections and integration with MDA resource planning systems.