FG bans physical cash payments, orders PoS usage in MDAs

Federal Government, on Monday, announced the immediate suspension of physical cash payments for all revenue transactions.

It therefore directed Ministries, Departments and Agencies to deploy Point of Sale terminals and other approved electronic payment systems within 45 days.

The directive was contained in four treasury circulars issued by the Office of the Accountant-General of the Federation.

Accountant-General of the Federation, Shamseldeen Ogunjimi, said all payments to the Federal Government must now be made electronically and processed through channels approved by the Treasury and fully integrated into the Treasury Single Account.

“It is hereby directed that collections and/or acceptance of physical cash (in naira or other currencies) for all revenues due to the Federal Government is strictly prohibited,” one of the circulars stated. “All revenue collections must be made via electronic processing.”

The first circular, titled “Enforcement of No Physical Cash Receipt Policy for All Federal Government Revenue Transactions” and dated November 24,:2025, expressed concern over the continued use of cash at MDA revenue points despite existing TSA and e-payment policies. It warned that the practice undermines the integrity of government financial systems.

It ordered all MDAs and government-owned enterprises to immediately sensitise staff and the public, and to display notices such as “NO PHYSICAL CASH RECEIPT” and “NO CASH PAYMENT” at their collection points. Agencies currently receiving cash were given 45 days to install functional POS machines and other approved electronic devices. Accounting officers will be held liable for any violation.

A second circular, dated November 25, 2025, titled “Immediate Cessation of Direct Deductions on MDAs’ Dedicated Collection Systems”, addressed unauthorised deductions made through customised payment platforms. The Treasury said it had discovered that some MDAs were using front-end applications connected to Payment Solution Service Providers to deduct fees and commissions before remitting funds to the TSA—an action it described as a breach that causes “significant revenue leakages.”

FG also announced that, effective January 1, 2026, it will introduce a unified electronic receipt known as the Federal Treasury e-Receipt, FTe-R, for all payments. Issued through the Revenue Optimisation, RevOP, platform, the FTe-R will serve as both the payer’s receipt and the official proof of revenue collection.

A fourth circular, dated November 27, 2025, outlined rollout guidelines for the full adoption of the RevOP platform. The government said the digital system will enhance visibility of revenue inflows, streamline billing processes and provide real-time monitoring of accounts operated by MDAs.

RevOP has now been approved as the central platform for end-to-end revenue optimisation across all federal entities.