The Federal Government has outlawed the use of physical cash for any revenue payable to it and ordered all Ministries, Departments and Agencies (MDAs) to install functional Point-of-Sale (POS) terminals or other approved electronic payment devices at every revenue collection point within 45 days.
The sweeping directive is contained in four Treasury circulars issued between November 24 and 27, 2025, by the Office of the Accountant-General of the Federation (OAGF), Dr. Shamseldeen Ogunjimi, and obtained exclusively by The PUNCH on Monday.Key highlights of the new policy:
Total Ban on Physical Cash
“Collections and/or acceptance of physical cash (in Naira or other currencies) for all revenues due to the Federal Government is strictly prohibited,” one of the circulars states.
All government revenue must now be paid electronically through Treasury-approved channels and credited directly into the Treasury Single Account (TSA) or Sub-TSA without any deduction.
45-Day Deadline for POS Deployment
MDAs still collecting cash have been given 45 days to deploy functional POS terminals and display bold notices reading “NO PHYSICAL CASH RECEIPT” and “NO CASH PAYMENT” at all revenue points. Accounting officers will be personally held liable for any violation.
End to Unauthorized Deductions by MDAs
A separate circular immediately stops MDAs and their Payment Solution Service Providers (PSSPs) from deducting fees, charges or commissions before remitting revenue to the TSA.
All service fees must now be paid directly from Treasury accounts. Non-compliant MDAs risk having their GIFMIS and TSA access disabled.
Mandatory National e-Receipt from January 1, 2026
From New Year’s Day, only the Federal Treasury e-Receipt (FTe-R) issued centrally through the new Revenue Optimisation (RevOP) platform will be recognised as valid proof of payment to the Federal Government.
Roll-out of Revenue Optimisation (RevOP) Platform
The government is deploying RevOP as the single service-wide digital platform for billing, collection, reconciliation and real-time monitoring of all federal revenues.
Every MDA must nominate three RevOP focal persons within seven working days and integrate their systems with the platform. Only CBN-licensed, NITDA-recommended and OAGF-approved PSSPs will be allowed to operate.
The circulars warn that the persistent collection of cash and unauthorized deductions “weaken the integrity of Federal Government e-collection and e-payment systems” and cause “significant revenue leakages.”
The measures mark the most comprehensive overhaul of federal revenue administration since the Treasury Single Account policy was introduced in 2015.
They build on the Treasury Management & Revenue Assurance System launched earlier in 2025 and signal the Tinubu administration’s aggressive push for full digitisation and transparency in government revenue flows.
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