FG Bans Cash Payments in MDAs, Mandates POS Terminals for All Federal Revenue
The Federal Government of Nigeria has officially banned the use of physical cash for revenue payments across all Ministries, Departments, and Agencies (MDAs). In a move aimed at modernizing federal revenue collection, accounting authorities have directed all MDAs to install Point of Sale (POS) terminals within 45 days. The directive, part of four Treasury circulars issued by the Office of the Accountant-General of the Federation, requires all payments to be made electronically and routed through approved channels.
The Accountant-General, Shamseldeen Ogunjimi, emphasized that accepting physical cash, whether in naira or foreign currency, is strictly prohibited. “All revenue collections, for and on behalf of the Federal Government, must be made via electronic processing,” the circular stated. MDAs are now tasked with displaying clear notices at all revenue points to inform staff and the public of the new no-cash policy, and accounting officers will be held accountable for any violations.
The move also targets unauthorized deductions and revenue leakages. Some MDAs had been using customized payment platforms that deducted fees before remitting the full amount to the Treasury Single Account (TSA). The government has ordered an immediate halt to such deductions, requiring all revenue to be remitted in full to TSA or Sub-TSA accounts. Existing payment portals must also be regularized by December 31, 2025, with strict enforcement for non-compliant agencies.
In a related step toward digital transformation, the Federal Government will begin issuing the Federal Treasury e-Receipt (FTe-R) from January 1, 2026. This national e-receipt system will provide unified proof of all government transactions and will be delivered electronically through the Revenue Optimisation (RevOP) platform. The platform is designed to streamline billing, automate reconciliation, and improve transparency in real-time across all MDAs, integrating with major financial institutions and the TSA.
These measures mark one of the most significant overhauls of federal revenue administration in Nigeria since the Treasury Single Account was introduced. Experts say the adoption of digital systems and POS terminals will reduce corruption, minimize revenue leakages, and provide a more efficient, transparent, and accountable financial environment for both government and citizens.
source: punch