In a major step to enhance transparency and accountability, Nigeria’s Federal Government has banned the collection of physical cash for all government revenues. The Accountant General of the Federation (AGF), Mr. Shamseldeen Ogunjimi, announced that all payments due to the government must now be processed electronically. The directive affects all Ministries, Departments, Agencies (MDAs), and Federal Government-owned Enterprises (FGOEs).
Ogunjimi highlighted that continued cash collections at various MDA centres contravene existing e-payment and Treasury Single Account (TSA) policies. “Persistent violations of this regulation are unacceptable, as physical cash collection undermines government policies and weakens the integrity of federal e-collection systems,” he stated. MDAs are now required to inform staff, stakeholders, and the public about the new cashless policy.
The AGF mandated that all MDAs and FGOEs deploy functional Point of Sale (POS) terminals or other approved electronic collection devices within 45 days. Notices stating “No Cash Payment” must be clearly displayed at all revenue points. Additionally, any deductions from collected funds must cease, and all revenues must be remitted directly into designated TSA accounts to prevent leakages.
To further streamline government collections, the AGF introduced the Federal Treasury e-Receipt (FTe-R) system, effective January 1, 2026. This centralized digital receipt system will provide official proof of payment and allow MDAs to track revenue in real time. The rollout is part of a wider effort to standardize and secure revenue collection while reducing reliance on cash transactions.
The government is also deploying the Revenue Optimisation (RevOP) and Assurance platform, enabling real-time collection and unified management of revenue across all MDAs and FGOEs. RevOP integrates with TSA, GIFMIS, NIBSS, FIRS, and other banking systems, providing automated billing, reconciliation, and monitoring of local and foreign currency accounts. The move signals Nigeria’s strong push toward a cashless, transparent, and technology-driven public financial system.
source: Arise