The Federal Government has outlawed the collection of physical cash in transactions involving its Ministries, Departments and Agencies (MDAs) effective January 1, 2026.
The directive outlawing the collection of cash was contained in a series of Treasury Circulars issued from the Office of the Accountant-General of the Federation (OAGF) last month.
A copy of one of the circulars said the decision was part of a multi-pronged initiative by the government to seize full control of the nation’s revenue streams.
Also, the OAGF said the federal government has ordered a complete shift to digital payment practices, while henceforth outlawing the collection of physical cash by all MDAs.
The OAGF said the sweeping reform was expected to help eliminate cash-based fraud, stop unauthorized collection of commissions, and boost government revenue collection as part of the strategies to help realize the objective of the country’s drive toward a $1 trillion economy.
Late last month, the OAGF issued four Treasury Circulars which gave details of the new regulations, warning failure to adhere to the directive would attract severe sanctions.
The first of the directives, which would take immediate effect, is the “Enforcement of ‘No Physical Cash Receipt’ Policy”.
With the directive, all revenue collections, whether in Naira or other currencies, must be made via electronic processing platforms, as the acceptance of physical cash is now “strictly prohibited”.
The OAGF observed that continued use of physical cash collection contravenes existing e-payment and Treasury Single Account (TSA) policies, warning that this action “weakens the integrity of Federal Government e-collection and e-payment systems”.
Consequently, MDAs have been given 45 days from the date of the circular to deploy functional Point of Sale (POS) terminals or other approved electronic collection devices at all revenue points.
Besides, Accounting Officers would be held accountable for any breaches traceable to their MDAs’ official transactions.
Another circular, which aims to plug revenue leakages in the MDAs titled “Immediate Cessation of Direct Deductions”, directs that the “Gross Amount of all revenues received from any payer was routed and settled directly into the designated TSA/Sub-TSA account without any deduction(s)”
This directive eliminates the practice of MDAs using customized applications to siphon charges, fees, and commissions before remitting the final amount to the TSA.
Henceforth, all legitimate charges for service providers must now be paid separately “directly from designated TSA Sub-account”.
Non-compliant MDAs, the circular said, face the risk of having “all their access on GIFMIS and TSA Sub-accounts disabled,” a sanction designed to enforce immediate and full compliance.
Furthermore, all existing collection portals and Payment Solution Service Providers (PSSPs) must be regularized with the OAGF by December 31, 2025.
The thrust of the entire reform, he said, is the Revenue Optimization (RevOP) & Assurance Platform, adopted as the government’s single approved system for end-to-end revenue management.
The RevOP platform is designed to provide unified automation of billing, reconciliation, and treasury visibility.
It would achieve seamless integration with the TSA, GIFMIS, CBN, NIBSS, FIRS, and all revenue-collecting banks, marking a major consolidation of the nation’s digital public finance infrastructure.
MDAs must nominate focal personnel and integrate all their existing Enterprise Resource Planning (ERP)/Financial Systems with the RevOP platform. Full compliance must be achieved within 60 days of the circular’s date.
To secure the audit trail, the circular on “Adoption of the Federal Treasury e-Receipt (FTe-R)” mandated that the FTe-R will be the only mandatory and recognized proof of revenue collection for the Federal Government.9
Starting January 1, 2026, this official receipt will be centrally generated and issued via the RevOP platform under the strict control of the OAGF, standardizing payments and enhancing accountability for citizens and businesses.
