The Federal Government has officially banned physical cash payments for all revenue-related transactions, ordering Ministries, Departments and Agencies (MDAs) to adopt Point of Sale (POS) terminals and other recognised electronic payment channels within the next 45 days. The policy shift, announced through four treasury circulars issued by the Office of the Accountant-General of the Federation (OAGF), marks one of the government’s strongest pushes yet toward a fully digital revenue system.
According to the Accountant-General of the Federation, Shamseldeen Ogunjimi, all payments to the Federal Government must now be processed electronically and routed through systems approved by the Treasury and linked to the Treasury Single Account (TSA). He stressed that physical cash payments, whether in naira or foreign currency, are now strictly prohibited at all MDA revenue points, insisting that electronic processing is the only acceptable method going forward.
The first circular, dated November 24, 2025, titled “Enforcement of No Physical Cash Receipt Policy for All Federal Government Revenue Transactions”, faulted the persistent use of cash in some MDAs despite long-standing TSA and e-payment guidelines. The government warned that such practices weaken the integrity of public finance management and could enable fraud or revenue diversion.
To enforce compliance, all MDAs and government-owned enterprises have been instructed to sensitise staff and the public, and to clearly display notices like “NO PHYSICAL CASH RECEIPT” and “NO CASH PAYMENT” at their collection centres. Agencies still collecting physical cash payments must deploy POS machines and other approved e-payment devices within the mandated 45-day window. Accounting officers will face sanctions for any violation of the directive.
The second circular, issued on November 25, 2025, raised concerns about unauthorised deductions made through bespoke collection systems operated by some MDAs. The OAGF noted that certain agencies were using customised applications linked to Payment Solution Service Providers (PSSPs) that deduct commissions before remitting funds to the TSA—actions described as breaches that cause “significant revenue leakages.”
In addition, the Federal Government announced that from January 1, 2026, a unified electronic receipt—known as the Federal Treasury e-Receipt (FTe-R)—will become the standard proof of revenue payment nationwide. Generated through the Revenue Optimisation (RevOP) platform, the FTe-R will serve as both an official government receipt and confirmation of a complete transaction.
A fourth circular, dated November 27, 2025, outlined the implementation strategy for the full rollout of the RevOP platform. The government explained that the digital system will improve transparency, streamline billing processes and allow real-time monitoring of MDAs’ revenue accounts.
With RevOP now approved as the central hub for end-to-end revenue optimisation, officials say the elimination of physical cash payments will significantly strengthen accountability, reduce leakages and modernise how government revenue is collected across all federal entities.