Nigeria’s Federal Government has announced a nationwide prohibition of physical cash payments for revenue transactions in Ministries, Departments, and Agencies, directing them to deploy Point of Sale machines and other approved electronic channels within 45 days.
The directive, issued by the Office of the Accountant-General of the Federation, forms part of sweeping changes targeted at tightening accountability, eliminating leakages, and improving transparency in how public funds are collected.
Shamseldeen Ogunjimi, the Accountant-General, explained that the era of walking into government offices with cash was over, noting that electronic payments were now mandatory.
“We are drawing a clear line, government revenue must be routed electronically because cash handling creates loopholes and fuels corruption,” a senior Treasury official said.
Moreover, the government emphasised that any agency still accepting cash after the deadline would be sanctioned, and accounting officers would be personally liable for breaches.
The Treasury highlighted concerns that some MDAs had continued to operate against existing regulations by collecting cash at revenue points or using unauthorised front-end payment systems that deduct fees before remitting funds to the Treasury Single Account.
According to the circulars, MDAs using customised platforms to deduct charges before remittance have contributed to “significant revenue losses.”
Hence, the government ordered an immediate halt to deductions at source, insisting that any service-related fees must be paid directly from federal accounts.
Furthermore, the directive mandates a fresh approval process for payment solution providers, warning that only platforms cleared by the Central Bank, NITDA, and the Treasury will be permitted.
As part of the reforms, a new nationwide electronic receipt system will commence from January 1, 2026.
The Federal Treasury e-Receipt will serve as the sole recognised proof of payment for all federal transactions and will be issued digitally through the Revenue Optimisation platform.
“This unified e-receipt closes gaps that previously enabled manipulation of paper receipts and loss of audit trails,” a Treasury source added, noting that the new digital receipts would strengthen compliance and simplify verification.
Additionally, the government is rolling out the Revenue Optimisation Platform to streamline billing, boost visibility over collections, and allow real-time monitoring across accounts operated by MDAs.
Agencies must assign focal officers to oversee integration into the platform within seven working days.
The reform marks the most extensive remodelling of federal revenue systems since the adoption of the Treasury Single Account policy.
It aligns with earlier initiatives introduced this year to automate collections, track vendor-related taxes, and support both naira and foreign currency transactions.
The government maintains that digital payment enforcement is not only a revenue reform but also a commitment.
It signals a decisive transition to technology-driven governance where every kobo paid to the Federal Government is traceable, auditable, and secured.