Federal Government Ban the use of Physical Cash for Revenue
The Federal Government of Nigeria (FG) has officially banned the use of physical cash for the payment of all federal revenues, and has directed all Ministries, Departments and Agencies (MDAs) to install Point of Sale (PoS) terminals within the next 45 days.
The directive is contained in four treasury circulars recently issued by the Office of the Accountant‑General of the Federation (OAGF), under the signature of Shamseldeen Ogunjimi. According to the documents, all payments to the government must now be made electronically through treasury-approved channels and routed into the official Treasury Single Account (TSA). The circulars stress that the continued acceptance of physical cash—whether in naira or other currencies—is now strictly prohibited.
The first circular, dated 24 November 2025, highlights the government’s concern over ongoing cash collections at MDA revenue points, despite the existence of previous e-payment and TSA policies. According to the circular, cash handling has undermined the integrity of federal e-collection processes and exposed revenue to possible leakages. As a result, the ban is now nonnegotiable. MDAs are required to install PoS terminals or other approved electronic devices for revenue collection within 45 days and display conspicuous signage at all collection points insisting: “NO PHYSICAL CASH RECEIPT” or “NO CASH PAYMENT.” Those who fail to comply risk being held personally accountable.
Other circulars accompanying the cash-ban tackle additional aspects of the reform. One order, dated 25 November 2025, demands an immediate end to unauthorized deductions — such as commissions or fees — made by MDAs via custom payment portals linked to private Payment Solution Service Providers (PSSPs). The government says these deductions had, over time, resulted in “significant revenue leakages.” Under the new rules, revenues must be remitted in full to TSA or Sub-TSA accounts; any service charges must now be borne by the government (i.e., paid directly from Treasury accounts). MDAs and payment platforms currently in use have been given until 31 December 2025 to regularise their operations with the OAGF. Non-compliant entities risk losing access to revenue-related systems including the government’s financial management infrastructure.
In addition, a third circular, dated 26 November 2025, introduced a new mandatory electronic receipt system known as the Federal Treasury e‑Receipt (FTeR), which will take effect from 1 January 2026. From that date, FTeR will become the only legally valid proof of payment for all federal government revenues. The e-receipt will be issued via a new digital platform, the Revenue Optimisation (RevOp) Platform — another component of the Treasury’s reform push.
According to the OAGF, the reforms — encompassing a cashless policy, mandatory e-receipts, and adoption of RevOp — are designed to deepen fiscal transparency, eliminate leakages, and strengthen the integrity of government revenue collection. Finance stakeholders expect that the measures will improve public trust, reduce corruption, and ensure that all revenues are properly accounted for in the TSA.
The new policy marks one of the most comprehensive overhauls of Nigeria’s federal revenue administration since the introduction of the TSA a decade ago.
