Abuja – The Federal Government has issued a sweeping directive banning all physical cash transactions in Ministries, Departments, and Agencies (MDAs), mandating the deployment of Point of Sale (PoS) terminals and other electronic payment systems to curb revenue leakages and enhance fiscal transparency.
The policy, effective January 1, 2026, requires all MDAs and federal government-owned enterprises to install functional PoS machines or approved digital devices at revenue collection points within 45 days. Collections must now flow directly into the Treasury Single Account (TSA) via electronic channels, with no acceptance of naira or foreign currency in cash.
Accountant-General of the Federation, Dr. Shamseldeen Ogunjimi, conveyed the directives through four treasury circulars dated November 24–27, 2025, citing “continued physical cash collection” at MDA counters as a major threat to the integrity of government finances despite longstanding e-payment rules.
Key reforms include:
– No Cash Policy: Immediate suspension of cash receipts; MDAs must display prominent notices reading “NO PHYSICAL CASH RECEIPT” and “NO CASH PAYMENT” at all transaction points. Staff and the public are to be sensitised without delay.
– Federal Treasury e-Receipt (FTeR): From January 1, 2026, the FTeR becomes the sole legally valid proof of payment for federal services, replacing handwritten or printed receipts. It will serve as both citizen acknowledgment and MDA verification tool.
– RevOP Platform Rollout: Full adoption of the Revenue Optimisation (RevOP) digital system for unified billing, real-time monitoring, and reconciliation of MDA accounts. It integrates with TSA, GIFMIS, CBN, NIBSS, FIRS, and banks to eliminate silos and track inflows in real time.
– End to Unauthorised Deductions: Ban on “front-end” fees, commissions, or charges by Payment Solution Service Providers (PSSPs) before TSA remittances, addressing billions in annual leakages from customised platforms.
Non-compliant MDAs face suspension from GIFMIS and TSA access, with the Office of the Accountant-General (OAGF) warning of strict enforcement.
Finance Minister Wale Edun described the overhaul as a “critical milestone in Nigeria’s anti-corruption and fiscal transparency agenda,” aligning with President Bola Tinubu’s economic reforms to reduce human discretion, enforce audit trails, and mobilise revenue amid fiscal pressures.
The changes will impact citizens and businesses paying for passports, licences, taxes, fines, and permits, shifting interactions to digital platforms for faster, traceable processing. Officials anticipate recovering substantial funds lost to fraud, positioning Nigeria closer to global digital governance standards.
