The Federal Government of Nigeria has issued a directive banning the use of physical cash for revenue payments, effective immediately. According to a series of Treasury circulars released by the Office of the Accountant-General of the Federation, all Ministries, Departments, and Agencies (MDAs) are required to install Point of Sale (POS) terminals within 45 days to facilitate electronic payments.
The circulars, signed by Accountant-General Shamseldeen Ogunjimi, emphasize that all payments to the Federal Government must be made through electronic channels approved by the Treasury and routed through the Treasury Single Account (TSA). The directive prohibits the acceptance of physical cash for all revenues due to the Federal Government, citing the need to strengthen the integrity of the government’s e-collection and e-payment systems.
The move aims to improve fiscal transparency and prevent revenue leakages. A second circular directs MDAs to cease making unauthorized deductions from revenue collections, while a third circular introduces a mandatory national e-receipt system, known as the Federal Treasury e-Receipt (FTe-R), to be used for all government payments from January 1, 2026.
A fourth circular outlines the rollout and implementation guidelines for the Revenue Optimisation (RevOP) platform, a digital platform designed to improve visibility of revenue collections, streamline billing, and enable real-time monitoring of accounts held by MDAs. The platform will integrate with existing financial systems, including the TSA, and provide unified automation of billing, reconciliation, and treasury visibility.
The new measures represent significant changes to federal revenue administration, aimed at enhancing transparency and efficiency. The Federal Government had previously introduced the Treasury Single Account (TSA) a decade ago, and more recently, unveiled a new payment platform, the Treasury Management & Revenue Assurance System, to streamline federal revenue collections and payments.
The latest directives are expected to improve the government’s ability to track and manage revenue, reducing the risk of revenue leakages and promoting fiscal accountability. With the introduction of the e-receipt system and the RevOP platform, the government aims to increase transparency and efficiency in revenue collection, ultimately supporting its efforts to achieve fiscal transparency and stability.