By Our Correspondent
The Federal Government of Nigeria has issued a sweeping directive banning all Ministries, Departments and Agencies (MDAs) from accepting cash payments for government revenues. The new policy marks one of the most significant financial reforms since the introduction of the Treasury Single Account (TSA). According to the Office of the Accountant General of the Federation (OAGF), all government payments must now be made through approved electronic platforms linked to the TSA.
In a series of circulars released between November 24 and 27, the OAGF announced that every payment to the government, whether in naira or foreign currency, must be processed electronically. This directive formally ends physical cash collection, which authorities say has contributed to revenue leakages and weakened transparency across federal agencies.
To support the transition, the government has given all MDAs a 45 day deadline to install Point of Sale (POS) machines or other approved electronic payment systems at their various offices and revenue points. Any MDA that fails to comply within this period will be considered in violation of the directive, and their accounting officers may face administrative consequences.
A key part of the new system is the Federal Treasury e Receipt, which will be the only valid proof of payment from January 1, 2026. The e Receipt will be generated through the Revenue Optimisation Platform, a central digital system designed to authenticate, monitor and manage all federal revenue collections in real time.
The policy also requires MDAs to remit all revenues directly to the TSA without any deductions. Fees, commissions or charges that were previously taken at the point of collection have been prohibited. Any approved service charges will instead be paid directly from Treasury accounts in order to maintain proper accountability.
Government officials say the reform aims to strengthen financial control, close loopholes used for diversion of public funds and improve the efficiency of revenue administration. They describe the change as an important step toward a more transparent and technology driven public finance system.
However, some concerns remain about the implementation process. Citizens in rural areas, or those without access to bank cards or reliable digital infrastructure, may initially face challenges adapting to an entirely electronic system. There are also questions about how quickly MDAs will be able to deploy the required equipment, train staff and maintain consistent service delivery.
Despite these issues, the government maintains that the long term benefits of a cashless revenue system outweigh the temporary difficulties. As the enforcement date draws near, attention will focus on how effectively MDAs adjust to the new requirements and how well the system functions once fully implemented.
