The Federal Government has outlawed the use of physical cash for revenue payments and ordered all Ministries, Departments, and Agencies to deploy PoS terminals and other approved electronic channels within 45 days. The directive is contained in four Treasury circulars issued by the Office of the Accountant-General of the Federation. The documents, signed by the Accountant-General, Shamseldeen Ogunjimi, stated that from now on, all payments to the government must be processed electronically through channels integrated into the Treasury Single Account. The circular stressed that continuing to accept physical cash is prohibited, and all collections, whether in naira or foreign currency, must go through e-payment platforms approved by the Treasury.
The first circular, titled Enforcement of No Physical Cash Receipt Policy for All Federal Government Revenue Transactions and dated November 24, 2025, described the move as a response to persistent cash collections happening at MDA revenue points despite existing digital payment rules. It explained that cash handling weakens transparency in revenue administration and undermines the integrity of the e-collection system. Agencies have now been mandated to sensitise staff and the public by displaying notices that read No Physical Cash Receipt and No Cash Payment at revenue desks, while those still collecting cash must deploy PoS terminals within 45 days. The circular warned that accounting officers will be held responsible if their organisations violate the order.
A second circular dated November 25, 2025, titled Immediate Cessation of Direct Deductions on MDAs’ Dedicated Collection Systems, focused on unauthorised charges deducted from revenue through customised payment platforms linked to Payment Solution Service Providers. The Treasury raised concern that the deductions contribute to revenue leakages and breach financial regulations. It ordered that all remittances must go into the TSA without any upfront deductions, noting that fees for service providers must now be paid directly from government accounts rather than removed at source. MDAs using private portals and PSSPs were instructed to regularise operations with the OAGF before December 31, 2025, or risk suspension from TSA and the Government Integrated Financial Management Information System.
In a third circular dated November 26, 2025, and titled Adoption of the Federal Treasury e-Receipt, the Federal Government announced the introduction of a unified electronic receipt system set to begin January 1, 2026. From that date, only the centrally issued Federal Treasury e-Receipt generated on the Revenue Optimisation platform will serve as official proof of government payment. The receipts will be transmitted electronically through channels chosen by each MDA, marking a major shift away from paper acknowledgements and fragmented receipt systems.
The fourth circular, dated November 27, 2025, outlined implementation guidelines for a national revenue optimisation platform called RevOP. The Federal Treasury explained that the platform will automate billing, reconciliation, and monitoring of revenue in real time while integrating with the TSA, GIFMIS, the Central Bank, NIBSS, FIRS, and revenue collection banks. MDAs must nominate three officers as RevOP focal points within seven working days and begin integrating their existing financial systems into the platform. Only PSSPs licensed by the Central Bank, cleared by NITDA, and approved by the Accountant-General will be allowed to operate on the platform. Agencies were further directed to submit complete details of their local and foreign currency accounts within 60 days to ensure full compliance.
The reforms are among the most extensive changes to Nigeria’s revenue administration since the Treasury Single Account rollout, reinforcing digital payment compliance and reducing leakages. In March 2025, it was reported that the Federal Government launched the Treasury Management and Revenue Assurance System, a platform designed to coordinate collections and payments across MDAs.
The first phase covers naira transactions and supports automatic tax deductions on vendor and contractor payments, including VAT, withholding tax, and stamp duty. A second phase, expected to commence on June 1, 2025, will oversee foreign exchange collections and link future transactions to ERP systems in government agencies.
For small businesses and MSME operators who deal with government agencies for permits, regulatory payments, contracts, or licensing, the policy means documentation and payments will now rely fully on digital channels. This could speed up transactions, reduce unofficial charges, and improve accountability.
However, businesses operating in low-connectivity locations or those used to cash-based interactions must quickly adapt to electronic payment systems to avoid delays. Agencies engaging with entrepreneurs must ensure PoS devices and online portals work efficiently to prevent revenue processing bottlenecks. The success of this transition will depend on how fast MDAs deploy infrastructure and how easily citizens and business owners can navigate the digital payment process in the coming months.
