The Federal Government has announced sweeping reforms to revenue collection, directing all Ministries, Departments, and Agencies (MDAs) to end the use of physical cash within 45 days and adopt electronic payment systems.
In a series of four circulars issued by the Office of the Accountant-General of the Federation (OAGF), the government said Point of Sale (POS) terminals and other approved electronic devices must be installed at designated locations to enforce compliance.
Accountant-General Shamseldeen Ogunjimi, who signed the directives, warned that continued acceptance of cash “weakens the integrity of Federal Government e-collection and e-payment systems.” He stressed that accounting officers would be held personally responsible for any breach.
Key Measures Announced
- No Cash Policy: All payments to the Federal Government must be made electronically and routed through approved Treasury channels. Notices reading “NO PHYSICAL CASH RECEIPT” and “NO CASH PAYMENT” are to be displayed at revenue points.
- Ban on Unauthorized Deductions: MDAs were ordered to stop using customised platforms that deduct charges before remitting funds to the Treasury Single Account (TSA). All revenues must now be remitted in full, with service fees paid separately from Treasury accounts.
- Mandatory e-Receipts: From January 1, 2026, the Federal Treasury will issue a unified electronic receipt (FTe-R) for all government transactions, serving as official proof of payment.
- Revenue Optimisation Platform (RevOP): A new digital platform will be deployed to automate billing, reconciliation, and monitoring of MDA accounts. Agencies must integrate their systems with RevOP and nominate focal officers within seven working days.
The reforms build on the Treasury Single Account introduced a decade ago and the Treasury Management & Revenue Assurance System unveiled earlier in March 2025. Officials say the measures are designed to strengthen fiscal transparency, eliminate leakages, and modernise federal revenue administration.
The OAGF also directed MDAs to submit details of all local and foreign currency accounts within 60 days, warning that non-compliant agencies risk losing access to the Government Integrated Financial Management Information System (GIFMIS) and TSA accounts.
“These measures represent some of the most far-reaching changes to federal revenue administration in recent years,” Ogunjimi said, adding that the government remains committed to strict compliance with operational procedures and safety standards.
