THE Federal Government has officially prohibited the use of physical cash for all revenue payments across its Ministries, Departments and Agencies, directing MDAs to deploy Point of Sale terminals and other approved electronic payment systems within 45 days.
The directive is contained in four Treasury circulars issued by the Office of the Accountant General of the Federation (OAGF), obtained by journalists yesterday.
In the circulars, the Accountant General, Shamseldeen Ogunjimi, said all payments to the Federal Government must now be made electronically and routed through channels authorised by the Treasury.
According to the first circular, dated November 24, 2025, titled Enforcement of No Physical Cash Receipt Policy for All Federal Government Revenue Transactions, the continued collection of physical cash at MDA revenue points violates existing rules on e-payment and undermines the integrity of the Treasury Single Account system.
The OAGF warned that MDAs must immediately stop accepting cash and display signage at all collection points stating NO PHYSICAL CASH RECEIPT and NO CASH PAYMENT.
Any agency still collecting cash has been given 45 days to install functional PoS terminals or other approved devices as accounting officers will be held personally liable for violations.
A second circular issued on November 25, 2025, titled Immediate Cessation of Direct Deductions on MDAs Dedicated Collection Systems, addressed unauthorized deductions on customised payment portals used by some MDAs.
The Treasury said the practice which involved deducting fees and commissions before remitting revenue had caused significant leakages and contravenes federal financial regulations.
The circular ordered an immediate stop to such deductions.
All revenues must henceforth be remitted in full to designated TSA or sub-accounts, while service charges will be settled directly from Treasury accounts.
All existing revenue portals and Payment Solution Service Providers must regularise their operations with the OAGF before December 31, 2025, or risk losing access to GIFMIS and TSA accounts.
A third circular, dated November 26, 2025, announced the adoption of a unified Federal Treasury e-Receipt system (FTe-R). Starting January 1, 2026, the Federal Government will issue a single electronic receipt as the only valid proof of all federal payment transactions.
The receipts will be generated through the Revenue Optimisation platform and delivered electronically.
The fourth circular, issued on November 27, 2025, detailed the rollout of the Revenue Optimisation Platform (RevOP), a new digital system designed to streamline billing, reconciliation, and real-time monitoring of MDA revenue accounts. RevOP will integrate with TSA, GIFMIS, the CBN, NIBSS, FIRS and revenue-collecting banks.
MDAs have been directed to nominate three officers as RevOP focal personnel within seven working days and ensure that all their existing systems are fully integrated with the platform.
Only licensed and OAGF-approved Payment Solution Service Providers may operate on the platform.
The circulars also ordered MDAs to submit full details of their local and foreign currency accounts and ensure compliance within 60 days.
These reforms represent one of the most sweeping overhauls of Nigeria’s federal revenue administration since the introduction of the Treasury Single Account a decade ago.
Earlier in March 2025, the Federal Government unveiled the Treasury Management & Revenue Assurance System to streamline federal payments and collections, enabling MDAs to generate bank statements, track balances, and automate tax deductions including VAT, WHT and Stamp Duty.
A second phase of that platform, covering foreign exchange transactions, was expected to commence on June 1, 2025.