FG Bans Cash Payments for Revenue, Orders MDAs to Deploy POS in 45 Days
- The Federal Government has banned MDAs from accepting physical cash and directed them to deploy POS terminals within 45 days
- The Office of the Accountant General of the Federation also stopped direct deductions from customised payment platforms, citing revenue leakages
- The government said a new national e-receipt system will become the only valid proof of federal payments from January 1, 2026, and directed all MDAs to integrate with the new RevOP platform
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, tech and macroeconomic trends in Nigeria.
The Federal Government has stopped Ministries, Departments and Agencies (MDAs) from collecting physical cash for revenue payments and ordered the deployment of Point of Sale (POS) terminals and other approved e-payment tools within 45 days.
This directive was contained in a series of Treasury circulars issued by the Office of the Accountant-General of the Federation (OAGF), according to documents obtained on Monday.
In the circulars, Accountant-General of the Federation, Shamseldeen Ogunjimi, said all payments to the federal government must now be processed electronically and paid into channels approved by the Treasury.
He warned that accepting physical cash at revenue points was no longer permitted.
Source: Getty Images
According to the circular titled “Enforcement of No Physical Cash Receipt Policy for All Federal Government Revenue Transactions”, the OAGF noted that some MDAs were still collecting cash despite the Treasury Single Account (TSA) and e-payment rules.
It said such practices undermine government efforts to strengthen transparency in public financial management.
MDAs were directed to educate staff and the public on the new rule and to display notices such as “NO PHYSICAL CASH RECEIPT” and “NO CASH PAYMENT” at all collection points.
Any MDA still involved in cash collection is required to deploy functional POS machines or other approved devices within 45 days. The circular added that accounting officers would be held responsible for violations,
A second circular dated November 25, 2025, focused on ending direct deductions made by MDAs through customised payment platforms.
The Treasury observed that some agencies operated front-end applications linked to Payment Solution Service Providers (PSSPs), which deducted fees before remitting balances into the TSA.
The OAGF said this had caused “significant revenue leakages” and directed that all revenues be remitted in full, with service charges to be paid separately from Treasury accounts.
Existing portals and PSSP arrangements must be regularised with the OAGF by December 31, 2025.
The circular warned that non-compliant MDAs risk losing access to the Government Integrated Financial Management Information System (GIFMIS) and their TSA accounts.
Agencies involved in public-private partnerships were advised to seek further clarification from the Treasury.
In a third circular dated November 26, 2025, the government announced the introduction of a unified Federal Treasury e-Receipt (FTe-R).
The initiative, which takes effect on January 1, 2026, will serve as the only valid proof of payments made to the Federal Government.
The receipts will be issued electronically through the Revenue Optimisation platform and transmitted via channels designated by each MDA.
Source: Getty Images
The fourth circular, issued on November 27, 2025, outlined the rollout of the Revenue Optimisation (RevOP) platform. The OAGF said the new digital system will provide real-time monitoring of MDA revenue accounts and harmonise billing, reconciliation and reporting.
Payment integration
The platform will integrate with TSA, GIFMIS, the Central Bank of Nigeria, NIBSS, the Federal Inland Revenue Service (FIRS) and revenue-collecting banks.
MDAs are required to nominate three officers as RevOP focal persons within seven working days and link their existing financial systems to the platform.
Only PSSPs licensed by the Central Bank, recommended by NITDA and approved by the OAGF will be allowed to operate under the new system. Agencies must also submit details of all local and foreign currency accounts within 60 days.
All four circulars were signed by Ogunjimi, who directed accounting officers and internal auditors to ensure full compliance.
The measures mark one of the most extensive updates to the federal revenue framework since the introduction of the TSA nearly ten years ago.
The development follows earlier reforms reported in March 2025, when the Federal Government unveiled the Treasury Management & Revenue Assurance System to streamline payments and collections across MDAs.
According to a memo cited at the time, the first phase covers naira transactions and enables improved tracking, bank statement generation and automated tax deductions for vendor payments.
The second phase, scheduled for June 1, 2025, would extend to foreign exchange transactions and integration with MDA enterprise systems.
CBN moves to end cash payment in government offices
Legit.ng earlier reported that the Central Bank of Nigeria made a move to end cash transactions and strengthen transparency in government offices.
The CBN introduced new payment solutions, the DocFlow System and MDA's Naira Payment Solution, to reduce cash use and improve efficiency.
The announcement was commended as the President Bola Tinubu-led administration moved towards digitalising and ensuring transparency in government offices.
Source: Legit.ng
