FG cashless policy mandates all MDAs to stop cash payments and install POS terminals within 45 days to improve revenue collection

The Federal Government on Monday outlawed the use of physical cash for revenue payments and directed all Ministries, Departments, and Agencies to install functional Point of Sale terminals within 45 days.

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The directive, issued through four Treasury circulars obtained by The PUNCH, was signed by the Accountant-General of the Federation, Shamseldeen Ogunjimi.

It mandates that all payments to the Federal Government be made electronically via approved channels and routed into the Treasury Single Account.

“All payments to government must be made through electronic channels approved by the Office of the Accountant-General of the Federation and integrated into the appropriate Treasury Single Account,” the circular stated, warning that continued acceptance of physical cash is strictly prohibited.

The first circular, dated November 24, 2025, titled ‘Enforcement of No Physical Cash Receipt Policy for All Federal Government Revenue Transactions’, noted that MDAs were still collecting cash despite existing rules, undermining the integrity of e-collection systems.

It requires MDAs and federal enterprises to display notices reading “NO PHYSICAL CASH RECEIPT” and “NO CASH PAYMENT” at all collection points.

A second circular, dated November 25, 2025, directed MDAs to halt unauthorised deductions on their customised payment platforms, citing significant revenue leakages.

All revenues must now be remitted directly to designated TSA or Sub-TSA accounts, with service fees paid from Treasury accounts rather than deducted at source.

Existing portals and Payment Solution Service Providers must be regularised with the OAGF by December 31, 2025.

The third circular, dated November 26, 2025, introduced the Federal Treasury e-Receipt (FTe-R), a unified electronic receipt system effective January 1, 2026.

The FTe-R will serve as official proof of payment and revenue collection, issued through the Revenue Optimisation (RevOP) platform.

The fourth circular, dated November 27, 2025, provided implementation guidelines for the RevOP platform, which will unify billing, reconciliation, and treasury visibility across all MDAs. Integration with TSA, GIFMIS, CBN, NIBSS, FIRS, and collecting banks is mandatory.

MDAs are required to nominate three officers to serve as RevOP focal personnel within seven working days and ensure system integration.

Only Payment Solution Service Providers licensed by the Central Bank, recommended by NITDA, and approved by the OAGF will be allowed to operate.

MDAs must submit full details of all local and foreign currency accounts within 60 days to ensure compliance.

The measures mark one of the most significant reforms to federal revenue administration since the Treasury Single Account was introduced a decade ago.

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Earlier in March 2025, the Federal Government had unveiled the Treasury Management & Revenue Assurance System to streamline revenue collections, with subsequent phases covering foreign exchange and integration with MDA ERP systems.