The Federal Government has banned the use of physical cash for revenue payments and directed all Ministries, Departments, and Agencies (MDAs) to deploy Point of Sale (PoS) terminals and other approved electronic payment systems within 45 days.
The directive is contained in a series of Treasury circulars issued by the Office of the Accountant-General of the Federation (OAGF). In the documents, the Accountant-General, Shamseldeen Ogunjimi, mandated that all payments to the Federal Government must now be made electronically through channels approved by the Treasury and integrated into the Treasury Single Account (TSA).
One circular dated November 24, 2025, titled ‘Enforcement of No Physical Cash Receipt Policy for All Federal Government Revenue Transactions’, said the government was alarmed by continued cash payments at MDA revenue points, despite longstanding e-payment rules. It warned that accepting cash undermines the integrity of federal electronic collection systems.
The circular directed MDAs and Federal Government Owned Enterprises to immediately sensitise staff and the public, and to display notices stating “NO PHYSICAL CASH RECEIPT” and “NO CASH PAYMENT” at all collection points. Any MDA still receiving cash must, within 45 days, install functional PoS terminals or other approved devices. Accounting officers will be held liable for violations.
A second circular dated November 25, 2025, titled ‘Immediate Cessation of Direct Deductions on MDAs’ Dedicated Collection Systems’, addressed the widespread use of customised payment portals linked to Payment Solution Service Providers (PSSPs), where charges were deducted before remittance to the TSA. The Treasury described the practice as a major source of revenue leakage and ordered an immediate halt. All revenues must now be remitted in full, with service fees paid separately from Treasury accounts. All portals and PSSPs must be regularised with the OAGF by December 31, 2025.
A third circular, dated November 26, 2025, introduced the Federal Treasury e-Receipt (FTe-R), a unified electronic receipt system that will take effect on January 1, 2026. The FTe-R will serve as the only valid proof of payment for all Federal Government transactions and will be issued electronically through the Revenue Optimisation platform.
The fourth circular, dated November 27, 2025, detailed the rollout of the Revenue Optimisation Platform (RevOP), a new digital system designed to consolidate federal revenue collection, improve transparency, and provide real-time visibility of MDA accounts. The platform integrates with TSA, GIFMIS, CBN, NIBSS, FIRS, and revenue-collecting banks.
MDAs are required to nominate three RevOP focal officers within seven working days and integrate all existing financial systems with the new platform. Only CBN-licensed PSSPs endorsed by NITDA and approved by the OAGF will be allowed to operate. MDAs must also submit full details of all local and foreign currency accounts within 60 days.
According to the Treasury, the measures represent some of the most wide-ranging reforms to federal revenue administration since the introduction of the TSA a decade ago and are aimed at strengthening transparency, plugging leakages, and enhancing digital management of government funds.