FG bans cash payments, orders MDAs to switch fully to e-payment, e-receipts

The Federal Government on Monday, announced a ban on the use of physical cash for any form of revenue payment or collection across its Ministries, Departments and Agencies (MDAs), declaring that the era of cash transactions in government offices has come to an end.

In a series of fresh circulars issued by the Office of the Accountant-General of the Federation (OAGF), the government said it is alarmed by the persistent violation of the Treasury Single Account (TSA) and e-payment policies despite many years of clear directives prohibiting cash handling at transaction centres.

According to the circulars, the continued use of cash by some MDAs has created loopholes, weakened the integrity of the government’s electronic payment systems and exposed public revenue to leakages and manipulation.

The Accountant-General, Shamseldeen Ogunjimi, noted that the practice of collecting cash at government offices is not only unlawful but undermines transparency and accountability, which the TSA was created to enforce.

The government therefore directed all MDAs and Federal Government-Owned Enterprises to immediately stop accepting or collecting physical cash, whether in naira or any other currency, for any government revenue.

It added that all payments must henceforth be made through approved electronic channels integrated into the TSA. MDAs were further instructed to sensitize their staff, service users and the public on the new order and to display visible notices at all payment points bearing the warnings: “No physical cash receipt” and “No cash payment.” Agencies currently handling cash were given forty-five days to deploy functional POS machines or other approved electronic collection devices, with Accounting Officers held personally responsible for violations.

In another directive, the OAGF condemned the growing trend of MDAs using customised portals and Payment Solution Service Providers (PSSPs) that deduct fees, charges or commissions at the point of revenue collection before remitting the balance to the TSA.

The circular warned that these unauthorised platforms have led to significant revenue leakages and contravene financial regulations guiding the deployment of payment systems for government collections. It therefore ordered the immediate stoppage of all such deductions and insisted that every kobo collected must be remitted in full to the designated TSA or Sub-TSA account.

Service providers’ charges, where applicable, are to be paid separately from designated TSA sub-accounts.

The government also directed all MDAs using portals or PSSPs without approval to regularise their arrangements with the OAGF on or before December 31, 2025. Any agency that fails to comply risks having its GIFMIS and TSA access disabled.

As part of the reforms to strengthen transparency, the government also announced the introduction of the Federal Treasury e-Receipt (FTe-R), which will become the only recognised and mandatory proof of payment for all Federal Government revenue from January 1, 2026.

The OAGF said the e-receipt will be centrally generated, issued to payers through the RevOP platform and transmitted electronically in line with approved technical and security standards. The new electronic receipt, once generated, will serve as both the payer’s official receipt and the government’s proof of revenue collection for the relevant MDA.

In another circular, the Accountant-General unveiled the Revenue Optimization (RevOP) and Assurance Platform, which will now serve as the unified system for real-time government revenue collection across all MDAs and Federal Government-Owned Enterprises. The platform is expected to enhance visibility, automate billing and reconciliation processes, enable real-time monitoring of local and foreign accounts, and integrate seamlessly with TSA, GIFMIS, CBN, NIBSS, FIRS and all revenue-collecting banks. MDAs were ordered to nominate three focal officers within seven working days, integrate all their existing financial or ERP systems with RevOP, and ensure that only CBN-licensed and NITDA-recommended PSSPs approved by the Treasury are allowed to operate on their platforms. Agencies were given sixty days to comply and must also submit details of all local and foreign accounts being operated to the OAGF.