The Federal Government has officially banned the use of physical cash for all federal revenue payments, ordering Ministries, Departments, and Agencies (MDAs) to install Point of Sale (POS) terminals within 45 days. The directive is part of a series of Treasury circulars issued by the Office of the Accountant-General of the Federation (OAGF).
According to the circulars obtained by The PUNCH, Accountant-General Shamseldeen Ogunjimi stated that all payments to the government must now be made electronically through approved channels integrated with the Treasury Single Account (TSA).
“All revenue collections, for and on behalf of the Federal Government, must be made via electronic processing,” the circular warned, adding that continued acceptance of cash is strictly prohibited.
The first circular, titled Enforcement of No Physical Cash Receipt Policy for All Federal Government Revenue Transactions, noted that some MDAs were still collecting cash despite existing e-payment rules, weakening the integrity of federal e-collection systems. The circular requires MDAs to display “NO PHYSICAL CASH RECEIPT” and “NO CASH PAYMENT” signs at all revenue points and deploy functional POS terminals within 45 days. Accounting officers will be held responsible for breaches.
A second circular targeted unauthorised deductions from revenue collected through customised payment platforms. MDAs were directed to remit all funds to designated TSA or Sub-TSA accounts without deductions, to prevent revenue leakages and improve fiscal transparency. All payment portals must be regularised with the OAGF by December 31, 2025.
The third circular introduces the Federal Treasury e-Receipt (FTe-R), a unified electronic receipt system for all government payments starting January 1, 2026. The FTe-R, delivered via the Revenue Optimisation (RevOP) platform, will serve as the only official proof of federal transactions.
The fourth circular provides rollout guidelines for RevOP, the government’s new digital platform for revenue management. RevOP will automate billing, reconciliation, and treasury visibility, integrating with the TSA, GIFMIS, CBN, NIBSS, FIRS, and banks. MDAs must nominate three officers as RevOP focal personnel and integrate existing financial systems with the platform. Only licensed and approved Payment Solution Service Providers (PSSPs) will be allowed to operate.
All four circulars, signed by Ogunjimi, directed accounting officers, finance directors, and internal auditors to ensure wide circulation and strict compliance. These reforms mark the most significant changes to federal revenue administration since the Treasury Single Account was introduced a decade ago.
Earlier this year, the government launched the Treasury Management & Revenue Assurance System to streamline federal collections, covering Naira payments initially, with plans to integrate foreign exchange transactions and MDA ERP systems later.
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