The Federal Government of Nigeria has announced plans to eliminate cash payments in Ministries, Departments, and Agencies (MDAs) by deploying Point of Sale (PoS) terminals at designated locations within 45 days. This move aims to streamline revenue collection and enhance fiscal transparency. According to a circular signed by the Accountant-General, Shamseldeen Ogunjimi, all payments to the Federal Government must now be made electronically through approved channels.

This directive is part of a broader effort to reform federal revenue administration, which includes the introduction of a new payment platform called the Treasury Management and Revenue Assurance System. The system is designed to manage federal revenue collections and payments across MDAs, including those benefiting from donor funds, trust funds, social security funds, and special funds.

The government has expressed concern over the continued use of physical cash for revenue collection, despite existing rules on e-payment and the Treasury Single Account. The practice is seen as weakening the integrity of federal e-collection and e-payment systems. To address this, MDAs have been directed to display notices indicating “NO PHYSICAL CASH RECEIPT” and “NO CASH PAYMENT” at all revenue collection points.

In addition to the PoS terminal deployment, the government has introduced a mandatory national e-receipt system, known as the Federal Treasury e-Receipt (FTe-R). The system will provide a unified electronic receipt for all government payments, which will serve as proof of federal transactions. The FTe-R will be issued through the Revenue Optimisation platform and delivered electronically to payers.

The government has also launched a digital platform called Revenue Optimisation (RevOP) to improve visibility of revenue collections, streamline billing, and allow real-time monitoring of accounts held by MDAs. The platform will provide unified automation of billing, reconciliation, and treasury visibility, and integrate with existing financial systems.

The implementation of these measures is expected to enhance fiscal transparency, reduce revenue leakages, and improve the overall efficiency of federal revenue administration. The government has directed accounting officers, finance directors, and internal auditors to ensure strict compliance with the new directives, which are aimed at promoting a more modern and accountable public financial management system.