The Federal Government has announced a major overhaul of revenue collection across Ministries, Departments, and Agencies (MDAs), mandating the cessation of physical cash payments and the deployment of Point of Sale (POS) terminals at all designated locations within 45 days. The initiative aims to enhance transparency, reduce revenue leakages, and modernize federal revenue administration.
The directive comes through a series of four circulars issued by the Office of the Accountant-General of the Federation (OAGF) and signed by Accountant-General Shamseldeen Ogunjimi. It marks one of the most significant reforms in federal revenue administration since the introduction of the Treasury Single Account (TSA) a decade ago.
In March 2025, the government launched the Treasury Management & Revenue Assurance System (TMRA), a digital platform designed to streamline the management of federal revenue and payments across MDAs, including those receiving donor, trust, social security, and special funds. The recent circulars build on this system, enforcing full electronic payment and collection for all government transactions.
End of Cash Collections
The first circular, titled “Enforcement of No Physical Cash Receipt Policy for All Federal Government Revenue Transactions” and dated November 24, 2025, explicitly prohibits the collection of cash—whether in naira or foreign currency—at all MDA revenue points.
“All revenue collections, for and on behalf of the Federal Government, must be made via electronic processing,” the circular stated. It directed MDAs and Federal Government Owned Enterprises to deploy functional POS terminals or other approved electronic devices at all collection points within 45 days and to display clear notices stating “NO PHYSICAL CASH RECEIPT” and “NO CASH PAYMENT.” Accounting officers are to be held personally accountable for non-compliance.
Cessation of Direct Deductions
A second circular, dated November 25, 2025, addresses the unauthorised deductions previously made by MDAs through customized payment platforms linked to Payment Solution Service Providers (PSSPs). According to the OAGF, such deductions violated regulations and caused significant revenue leakages, undermining fiscal transparency.
All revenue must now be remitted in full to the designated TSA or Sub-TSA accounts, with any service fees to be paid directly from Treasury accounts rather than deducted at source. MDAs involved in public-private partnerships were instructed to seek Treasury guidance, and non-compliance may lead to suspension of access to the Government Integrated Financial Management Information System (GIFMIS) and TSA accounts.
Introduction of Federal Treasury e-Receipt (FTe-R)
The third circular, dated November 26, 2025, introduces the Federal Treasury e-Receipt (FTe-R) system, which will become the sole valid proof of federal revenue transactions starting January 1, 2026. The centrally-issued electronic receipt, delivered through the Revenue Optimisation (RevOP) platform, will serve both as official proof of collection and as a receipt for payers. The second phase, expected to commence June 1, 2026, will extend the system to cover foreign exchange collections and integrate with MDA Enterprise Resource Planning systems.
Deployment of Revenue Optimisation Platform
The fourth circular, titled “Rollout and Implementation Guidelines on the Adoption of the Revenue Optimisation (RevOP) Platform” and dated November 27, 2025, outlines the nationwide deployment of the RevOP digital platform. The system is designed to provide unified automation for billing, reconciliation, and treasury visibility, integrating with TSA, GIFMIS, the Central Bank of Nigeria (CBN), NIBSS, FIRS, and revenue-collecting banks.
MDAs are required to nominate three officers as RevOP focal personnel within seven working days and ensure integration of existing financial systems with the platform. Only PSSPs licensed by the CBN, recommended by NITDA, and approved by the OAGF will be allowed to operate within the system. All MDAs must submit full details of all local and foreign currency accounts within 60 days to comply with the new regulations.
The OAGF emphasized that these reforms will strengthen accountability, prevent revenue leakages, and enhance transparency in government financial operations. All four circulars were directed for wide circulation among accounting officers, finance directors, and internal auditors to ensure full compliance.
This sweeping digital transformation signals a decisive step toward a cashless, fully traceable system for federal revenue management in Nigeria.
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