The Federal Government has issued a sweeping order that brings all cash payments to an end across Ministries, Departments and Agencies. The new directive requires every MDA to adopt electronic revenue channels and install Point of Sale terminals within forty five days.
The order was outlined in a set of four Treasury circulars released by the Office of the Accountant General of the Federation. Shamseldeen Ogunjimi stated that all government payments must now pass through approved electronic platforms linked to the Treasury Single Account. He stressed that accepting cash in any form is no longer allowed.
The first circular, dated 24 November, expressed worry over persistent cash collection at revenue points despite earlier rules on electronic payments. It noted that physical cash weakens the integrity of the government’s collection framework and instructed MDAs to display clear notices informing the public that cash will not be accepted. Agencies still handling cash have been told to deploy functional POS machines before the deadline, and accounting officers will be held responsible for any breach.
A second circular, dated 25 November, focused on the growing use of customised payment platforms by MDAs that deduct charges before remitting funds to the Treasury. The Accountant General described these practices as violations that drain revenue and undermine fiscal transparency. All agencies have been ordered to remit revenue in full, with fees settled separately through Treasury accounts. Those involved in public private ventures must seek Treasury guidance. Failure to comply may lead to loss of access to GIFMIS and TSA accounts.
The third circular, dated 26 November, introduced a national electronic receipt, known as the Federal Treasury e Receipt. Beginning 1 January 2026, all proof of payment will be issued through the Revenue Optimisation platform, giving both the payer and the receiving agency an authenticated digital record.
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A fourth circular, dated 27 November, detailed the rollout of the Revenue Optimisation platform and directed all MDAs to integrate their systems with it. The aim is to improve billing, strengthen oversight and provide real time visibility of government earnings. Only payment service providers approved by the Central Bank and the Treasury will be allowed to operate, and existing providers must connect to the platform.
Analysts say these measures form one of the most far reaching reforms of federal revenue administration since the introduction of the Treasury Single Account ten years ago. Earlier in March the government launched the Treasury Management and Revenue Assurance System to harmonise payment processes, improve tracking and automate statutory deductions. The first phase covered naira transactions while the second phase, which began in June, is designed to extend the system to foreign currency collections and full integration with MDA resource planning software.
The latest directives mark a decisive shift toward a fully digital revenue framework and signal the government’s intent to close leakages, strengthen compliance and modernise public finance operations nationwide.
