From Victor Osula, Abuja
The Federal Government has announced the full digitalisation of revenue collection across all Ministries, Departments and Agencies (MDAs), with a mandatory switch to cashless payments beginning January 1, 2026.
Under the new regime, the Federal Treasury e-Receipt (FTeR) will become the only valid and legally recognised receipt for all federal transactions — marking the most far-reaching reform of Nigeria’s revenue administration since the introduction of the Treasury Single Account (TSA) in 2015.
The policy direction was contained in four circulars issued between November 24 and 27, 2025, by the Office of the Accountant-General of the Federation (OAGF).
Signed by the Accountant-General of the Federation, Dr Shamseldeen B. Ogunjimi, the lead circular titled “Enforcement of No Physical Cash Receipt Policy for All Federal Government Revenue Transactions” outlawed the acceptance of physical cash — in naira or foreign currency — at any federal revenue point.
Despite years of e-payment reforms, the AGF expressed concern that some MDAs still collect cash, undermining transparency, audit processes and the integrity of existing digital platforms.
“Collections and/or acceptance of physical cash for all revenues due to the Federal Government is strictly prohibited,” the circular stated.
Key directives include the mandatory display of “NO PHYSICAL CASH RECEIPT” and “NO CASH PAYMENT” notices at all revenue-collection points; deployment of functional PoS terminals or other Treasury-approved payment devices by January 8, 2026; and personal liability for accounting officers of erring MDAs.
A second circular, issued on November 25, faulted the practice by some MDAs and Payment Solution Service Providers (PSSPs) of deducting fees or commissions before remitting revenue to the TSA.
Describing the practice as a major source of leakages, the OAGF directed that all revenues must be remitted in full, with service charges to be settled directly by the Treasury.
Non-compliant MDAs risk losing access to the GIFMIS platform and the TSA. All existing revenue portals must also be regularised with the OAGF by December 31, 2025.
The third circular, dated November 26, introduced the Federal Treasury e-Receipt (FTeR), which becomes compulsory nationwide on January 1, 2026.
Only electronic receipts generated through the Revenue Optimisation platform will be recognised for any federal transaction.
In the fourth circular, the OAGF launched the Revenue Optimisation (RevOP) Platform — a unified digital infrastructure for billing, payment, reconciliation and real-time monitoring of government revenues.
The platform will integrate TSA, GIFMIS, the Central Bank of Nigeria, NIBSS, FIRS, commercial banks and other payment partners. MDAs have been directed to nominate three officers each as RevOP implementation champions.
While transparency advocates have welcomed the sweeping reforms, concerns remain among rural dwellers, small business operators and citizens who still rely on cash at service points with weak internet or PoS infrastructure.
The OAGF urged the public to embrace the transition, insisting that the reforms will block leakages, improve service delivery and strengthen accountability in federal revenue management
