The Federal Government has imposed a sweeping ban on the use of physical cash for the payment or collection of public revenue, ordering ministries, departments and agencies (MDAs) to switch entirely to electronic channels within weeks. The directive, contained in a series of Treasury circulars issued by the Office of the Accountant-General of the Federation (OAGF), represents one of the most far-reaching efforts yet to close loopholes and tighten control of federal finances.
In the first circular, dated 24 November and titled Enforcement of No Physical Cash Receipt Policy for All Federal Government Revenue Transactions, the Accountant-General, Shamseldeen Ogunjimi, said Abuja was alarmed by the “continued physical cash collection” at MDA revenue points despite long-standing rules mandating e-payment and the Treasury Single Account (TSA). Cash collection, the document warned, violated federal policy and “weakens the integrity” of the government’s e-collection architecture.
Henceforth, the circular said, “all revenue collections, for and on behalf of the Federal Government, must be made via electronic processing,” and routed through Treasury-approved platforms integrated into the TSA. MDAs still handling cash must now deploy functional POS terminals and other approved devices within 45 days, while displaying prominent notices reading “NO PHYSICAL CASH RECEIPT” and “NO CASH PAYMENT” at all revenue points. Accounting officers will be held personally responsible for breaches.
A second circular, issued on 25 November, targeted what the Treasury described as unauthorised “direct deductions” by MDAs using customised payment portals linked to private Payment Solution Service Providers (PSSPs). The circular said charges, commissions and fees were being deducted at source before funds reached the TSA — a practice the OAGF said had caused “significant revenue leakages” and undermined fiscal transparency. All such deductions must cease immediately; any fees arising from service provision must now be paid directly from Treasury accounts, not carved out of collections. Existing portals and PSSPs must regularise their operations with the OAGF before 31 December or risk being shut out of government systems, including GIFMIS and TSA accounts.
A third circular, dated 26 November, introduced a unified electronic receipt for all federal transactions. Under the new Federal Treasury e-Receipt (FTe-R) system, to take effect from 1 January 2026, only centrally issued electronic receipts will be recognised as proof of payment. The receipts will be delivered digitally through the Treasury’s Revenue Optimisation platform and serve both as the payer’s receipt and the government’s official validation record.
The final circular, issued on 27 November, announced the rollout of the Revenue Optimisation (RevOP) platform itself — a unified, digital system designed to automate billing, reconciliation and real-time revenue monitoring across government agencies. RevOP will integrate with TSA, GIFMIS, the Central Bank, NIBSS, FIRS and designated collecting banks, offering what the Treasury describes as complete “service-wide visibility” of public funds.
Each MDA has seven working days to nominate three RevOP focal officers, and 60 days to submit full details of all local and foreign currency accounts. Only PSSPs licensed by the Central Bank, vetted by NITDA and approved by the OAGF will be allowed to operate on the platform.
The overhaul marks the most significant tightening of Nigeria’s revenue administration since the TSA was introduced a decade ago. It follows the government’s launch of the Treasury Management & Revenue Assurance System earlier this year — a platform designed to streamline federal revenue flows, automate tax deductions on vendor and contractor payments, and eventually integrate foreign exchange transactions and MDA enterprise systems.
Ogunjimi, in all four circulars, urged accounting officers, finance directors and internal auditors to ensure “strict compliance” and wide circulation of the directives, signalling a clear push by Abuja to clamp down on leakages and bring all public money firmly under central oversight.
