BREAKING: Nigerian govt bans physical cash payments, orders POS usage

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In addition to ordering Ministries, Departments, and Agencies (MDAs) to implement Point of Sale (POS), terminals, and other authorized electronic payment systems within 45 days, the Federal Government has ordered the immediate suspension of physical cash payments for all revenue transactions.

The Office of the Accountant-General of the Federation, or OAGF, issued four treasury circulars that included the directive.

All payments to the Federal Government must now be done electronically, processed through Treasury-approved channels, and fully integrated into the Treasury Single Account, TSA, according to Shamseldeen Ogunjimi, the Federation’s Accountant-General.

“It is hereby directed that collections and/or acceptance of physical cash (in naira or other currencies) for all revenues due to the Federal Government is strictly prohibited,” one of the circulars stated. “All revenue collections must be made via electronic processing.”

The first circular, dated November 24, 2025, and titled “Enforcement of No Physical Cash Receipt Policy for All Federal Government Revenue Transactions,” raised concerns about the continuous usage of cash at MDA revenue terminals in spite of TSA and e-payment regulations. The approach compromises the integrity of government finance systems, it warned.

It mandated that all MDAs and government-owned businesses post signs like “NO PHYSICAL CASH RECEIPT” and “NO CASH PAYMENT” at their collection locations and promptly educate employees and the general public. Agencies that now receive cash have 45 days to install approved electronic devices, such as POS machines, that are operational. Any infraction will result in accounting officers being held accountable.

Unauthorized deductions conducted via specialized payment platforms were the subject of a second circular, “Immediate Cessation of Direct Deductions on MDAs’ Dedicated Collection Systems,” dated November 25, 2025. The Treasury reported that it had found that certain MDAs were deducting fees and commissions before sending money to the TSA via front-end applications linked to Payment Solution Service Providers. The Treasury called this a breach that results in “significant revenue leakages.”

The Federal Treasury e-Receipt, or FTe-R, will be used for all payments starting on January 1, 2026, according to the government’s announcement. The FTe-R, which is issued via the Revenue Optimization, or RevOP, platform, will function as the formal documentation of revenue collection as well as the payer’s receipt.

The rollout criteria for the complete implementation of the RevOP platform were described in a fourth circular dated November 27, 2025. According to the government, the digital system will improve revenue inflow visibility, expedite billing procedures, and offer real-time account monitoring for MDAs.

RevOP is now authorized to serve as the primary platform for all government agencies’ end-to-end revenue optimization.

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