The Federal Government has imposed a sweeping ban on physical cash payments for all federal revenues, ordering Ministries, Departments, and Agencies to switch fully to electronic collections within 45 days. The directive, issued by the Office of the Accountant-General of the Federation, marks one of the most aggressive financial control reforms in recent years.
The order was conveyed through four Treasury circulars signed by Accountant-General Shamseldeen Ogunjimi and distributed to all federal MDAs. Under the new rules, every payment due to the Federal Government must be made electronically through Treasury-approved channels and routed into the Treasury Single Account.
The circulars explicitly outlaw the acceptance of cash in naira or foreign currencies at all federal revenue points. Officials warned that continued cash collection undermines government financial systems and violates existing e-payment and TSA regulations.
MDAs and government-owned enterprises have been directed to immediately inform staff and the public of the ban. They must also display clear notices at collection points stating “NO PHYSICAL CASH RECEIPT” and “NO CASH PAYMENT.” Any agency still collecting cash has been given a 45-day deadline to deploy functional Point of Sale terminals or other approved electronic payment devices.
The Treasury made it clear that accounting officers will be held personally responsible for any breach of the policy, signalling a tougher enforcement posture.
In a second directive, the government ordered the immediate halt of unauthorised deductions made by MDAs through customised payment platforms. The Treasury said it had discovered that some agencies were using payment solution providers to deduct charges and commissions before remitting funds to the TSA, a practice blamed for major revenue leakages.
All revenues must now be remitted gross, without deductions. Any fees owed to service providers will be paid directly from Treasury accounts. MDAs have until December 31, 2025, to regularise all payment portals and service providers with the Accountant-General’s office or risk sanctions.
Non-compliant agencies face serious consequences, including the suspension of access to the Government Integrated Financial Management Information System and their TSA accounts.
A third circular introduced a unified national electronic receipt system. From January 1, 2026, only the Federal Treasury e-Receipt will be recognised as valid proof of payment for federal transactions. The receipt will be issued centrally through the Revenue Optimisation platform and delivered electronically to payers.
The e-receipt will serve both as confirmation for citizens and as official revenue evidence for government entities, eliminating parallel or unverifiable receipts issued by individual MDAs.
The fourth directive formally rolled out the Revenue Optimisation platform as the government’s mandatory end-to-end revenue management system. The platform is designed to automate billing, reconciliation, and real-time treasury visibility while integrating with TSA, GIFMIS, the Central Bank, NIBSS, FIRS, and revenue-collecting banks.
Each MDA must nominate three officers to serve as focal personnel within seven working days and integrate existing financial systems into the platform. Only payment service providers licensed by the Central Bank, recommended by NITDA, and approved by the Treasury will be permitted.
MDAs were also ordered to submit full details of all local and foreign currency accounts and ensure full compliance within 60 days.
The reforms represent the most far-reaching overhaul of federal revenue administration since the Treasury Single Account was introduced over a decade ago. Officials say the measures are aimed at tightening controls, improving transparency, and plugging long-standing revenue leakages across government institutions.
