FG phases out cash revenue collection, gives MDAs 45 days to deploy PoS terminals

The federal government has prohibited ministries, departments and agencies (MDAs) from collecting physical cash for revenue transactions, citing persistent violations of e-payment and treasury single account (TSA) policies.

The directive was announced in four treasury circulars dated November 24, issued by the office of the accountant-general of the federation, and signed by Shamseldeen Ogunjimi, the accountant-general of the federation (AGF).

Ogunjimi expressed concern over continued physical cash collection at revenue points despite guidelines contained in earlier circulars.

He said the practice contravenes established financial regulations and weakens the integrity of the federal government’s electronic collection and payment systems.

“In view of the above, it is hereby directed that collections and/or acceptance of physical cash (in Naira or other currencies) for all revenues due to Federal Government is strictly prohibited,” the circular reads.

“All revenue collections, for and on behalf of the Federal Government must be made via electronic processing.”

To ensure compliance, the accountant-general directed MDAs to sensitise staff and the public, and display notices indicating “no physical cash receipt/no cash payment” at all revenue collection points.

“Hence, all payments to government must be made via electronic channels duly approved by the OAGF and integrated to the appropriate TSA accounts,” Ogunjimi said.

“MDAs/FGOEs currently collecting physical cash at various revenue centres or locations, must within forty-five (45) days of this circular, ensure the deployment of functional POS terminals or other approved electronic collection devices at all such locations.”

He urged accounting officers to ensure full compliance, noting that they will be liable for any breaches linked to their MDAs or agencies.

FG DIRECTS HALT OF DIRECT DEDUCTIONS FROM GOVERNMENT REVENUES

The accountant-general also raised concerns over MDAs deploying payment platforms and front-end applications without approval and allowing service providers deduct fees before remitting funds into the TSA.

According to the circular, the practices violate extant rules and regulations resulting in significant revenue leakages, which undermines the federal government’s efforts to achieve fiscal transparency.

To address this, Ogunjimi instructed all MDAs and federal government owned enterprises (FGOEs) to immediately stop direct deductions through dedicated portals, remit gross revenue into TSA accounts, and regularise all portals and payment service providers with the OAGF on or before December 31, 2025.

“Consequently, MDAs/FOEs found non-compliant shall have all their access on GIFMIS and TSA Sub-accounts disabled; and in the same vein, TSA/GIFMIS Department has been mandated to ensure full compliance,” the AGF said.

FG INTRODUCES E-RECEIPT FOR PROOF OF GOVERNMENT REVENUE PAYMENT

In a separate directive, Ogunjimi announced the introduction of a federal treasury e-receipt (FTe-R) as the sole recognised proof of government revenue payment from January 1, 2026.

He said the e-receipt will be centrally generated on the revenue optimisation (RevOP) platform and electronically transmitted to payers through designated payment channels.

The AGF said the move is aimed at achieving an end-to-end transparency within the TSA framework.

The fourth circular introduced the (RevOP) and assurance platform as the federal government’s unified system for real-time revenue collection, automation of billing, reconciliation and treasury visibility.

The accountant-general said the platform will integrate with TSA, government integrated financial management information system (GIFMIS), Central Bank of Nigeria (CBN), Nigeria Inter-Bank Settlement System Plc (NIBSS), Federal Inland Revenue Service (FIRS) and commercial banks.