FG Bans Cash Payments to MDAs, Orders Installation of POS Terminals Nationwide
The Federal Government has announced a sweeping ban on the use of physical cash for all revenue payments into federal coffers, ordering every Ministry, Department, and Agency (MDA) to install Point of Sale (POS) terminals and other approved electronic payment devices within 45 days. The directive is contained in four Treasury circulars issued by the Office of the Accountant-General of the Federation (OAGF), signed by the Accountant-General, Shamseldeen Ogunjimi.
According to the circulars, all payments due to the Federal Government must now be made strictly through electronic platforms approved by the Treasury and fully integrated with the Treasury Single Account (TSA). The documents clearly prohibit the collection or acceptance of physical cash in naira or any other currency for federal revenue transactions.
The first circular, dated November 24, 2025, and titled Enforcement of No Physical Cash Receipt Policy for All Federal Government Revenue Transactions, noted that despite existing rules on electronic payments and the TSA framework, many MDAs were still collecting revenues in cash. The Treasury described this practice as a direct violation of existing financial regulations and warned that it weakens the integrity of government e-payment systems.
Related News
300-Bed Enugu International Hospital Approaches Completion Amid Public Reactions
Construction of the 300-bed Enugu International Hospital is nearing completion, with officials and residents expressing optimism that the facility will…
Anambra Government Seals Shops in Onitsha Markets Over Monday Closure, Commends Compliant Traders
The Anambra State Government has sealed several shops across markets in Onitsha and nearby communities after traders failed to open…
Governor Otti Commissions Key Infrastructure Projects in Abia, Announces New SSG Appointment
Abia State Governor Alex Otti has commissioned major road and bridge projects in Arochukwu Local Government Area, announcing new leadership…
The circular directed all MDAs and Federal Government-Owned Enterprises to immediately begin sensitising staff and members of the public on the cashless policy. It also ordered the display of visible notices reading “NO PHYSICAL CASH RECEIPT” and “NO CASH PAYMENT” at all revenue collection points nationwide. MDAs that are yet to deploy electronic payment facilities were given a 45-day deadline to install functional POS terminals or other approved digital payment devices at all locations. The Treasury warned that accounting officers would be held personally responsible for any violation of the directive.
A second circular, dated November 25, 2025, focused on the issue of unauthorised deductions by MDAs through customised front-end payment platforms operated by Payment Solution Service Providers (PSSPs). The Treasury observed that some MDAs were deducting charges, commissions, and fees at the point of collection before remitting the net amount to the TSA. According to the OAGF, this practice has resulted in significant revenue leakages and undermined government efforts at achieving fiscal transparency. The circular ordered the immediate cessation of all such deductions and directed that all revenues must be remitted in full to the designated TSA or Sub-TSA accounts without any deductions whatsoever.
The document further stated that any service-related fees must now be paid directly from Treasury accounts and not deducted at source. All existing revenue collection portals and PSSPs used by MDAs are to be regularised with the OAGF on or before December 31, 2025. MDAs operating under public-private partnership arrangements were advised to seek further guidance from the Treasury. The circular warned that non-compliant MDAs risk having their access to the Government Integrated Financial Management Information System (GIFMIS) and TSA accounts disabled.
The third circular, dated November 26, 2025, introduced the mandatory adoption of the Federal Treasury e-Receipt (FTe-R). From January 1, 2026, a unified electronic receipt will be issued for all federal payments. The centrally issued FTe-R will serve as the only recognised proof of payment for federal transactions and will be delivered electronically through channels selected by each MDA using the Revenue Optimisation (RevOP) platform.
The fourth circular, dated November 27, 2025, outlined the rollout and implementation guidelines for the RevOP platform. The digital platform is designed to improve real-time visibility of government revenue collections, automate billing and reconciliation, and integrate seamlessly with TSA, GIFMIS, the Central Bank of Nigeria, NIBSS, FIRS, and revenue-collecting banks. Each MDA is required to nominate three officers as RevOP focal personnel within seven working days and ensure full integration of existing systems. Only PSSPs licensed by the Central Bank, recommended by NITDA, and approved by the OAGF will be allowed to operate.
The Treasury also directed MDAs to submit full details of all local and foreign currency accounts and ensure full compliance within 60 days. Observers say the reforms represent the most significant overhaul of federal revenue administration since the introduction of the TSA.
While many Nigerians have welcomed the move as a major step toward reducing corruption and revenue leakages, others have raised concerns about possible challenges, including refunds for failed transactions, infrastructure gaps in underserved areas, and the capacity of MDAs to comply within the stipulated timeframe.