The Federal Government has prohibited the use of physical cash for the payment of all revenues and directed Ministries, Departments, and Agencies (MDAs) to deploy Point of Sale (POS) terminals within 45 days.
The directive is contained in four Treasury circulars issued by the Office of the Accountant-General of the Federation on Monday.
In the circulars, the Accountant-General of the Federation, Shamseldeen Ogunjimi, ordered that all payments to the Federal Government must now be made electronically through channels approved by the Treasury and linked to the Treasury Single Account (TSA).
“It is hereby directed that collections or acceptance of physical cash (in naira or other currencies) for all revenues due to the Federal Government is strictly prohibited,” the circular read.
The first circular, dated November 24, 2025, titled Enforcement of No Physical Cash Receipt Policy, warned that continued cash collections at revenue points violate existing TSA and e-payment policies, undermine transparency, and “weaken the integrity” of government financial systems.
MDAs were instructed to sensitise staff and the public, display “NO CASH PAYMENT” notices, and deploy POS devices within 45 days. Accounting officers will be held liable for violations.
A second circular, dated November 25, 2025, ordered an immediate stop to unauthorised direct deductions made by MDAs through customised payment platforms.
The Treasury observed that some agencies used front-end applications linked to Payment Solution Service Providers to deduct charges before remitting funds to the TSA, practices that have caused “significant revenue leakages.”
MDAs must now remit all revenues in full, with service fees paid separately from Treasury accounts. All revenue portals and PSSPs must be regularised with the OAGF before 31 December 2025.
The third circular, dated November 26, 2025, introduced a unified Federal Treasury e-Receipt (FTe-R), to become the only valid proof of payment for federal transactions from January 1, 2026. The receipts will be issued through the Revenue Optimisation (RevOP) platform.
The fourth circular, issued on November 27, 2025, detailed the rollout of RevOP as the government’s new digital platform for real-time monitoring of revenue, automated billing, reconciliation, and enhanced treasury visibility.
The system integrates with TSA, GIFMIS, the CBN, banks, NIBSS, and the FIRS. MDAs must nominate three officers as RevOP focal persons within seven days and ensure their systems are integrated.
Only CBN-licensed and OAGF-approved PSSPs will be allowed to operate, while MDAs must submit details of all local and foreign accounts within 60 days.
The new directives mark one of the most sweeping reforms to federal revenue administration since the adoption of the TSA.
Earlier in March 2025, the Federal Government introduced the Treasury Management & Revenue Assurance System to unify revenue collections and payments across MDAs.
All four circulars were signed by Ogunjimi, who directed accounting officers, finance directors, and internal auditors to ensure full compliance.
(Punch)
