The Federal Government of Nigeria has introduced a sweeping new directive mandating a fully cashless revenue collection system across all its Ministries, Departments, and Agencies. The policy, announced through a circular dated November 24, 2025, signals the government’s most forceful attempt yet to eliminate physical cash payments in public institutions and close entrenched revenue leakages.
Under the new rule, no MDA is permitted to accept physical cash, whether in naira or foreign currency, for any government revenue. Instead, agencies must deploy functional Point of Sale terminals or other sanctioned electronic payment devices at every revenue collection point.
The circular gives any agency still collecting cash a 45-day deadline to fully transition to electronic channels approved by the Office of the Accountant-General of the Federation and linked to the national Treasury Single Account.
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In addition, the directive halts all deductions at source. Agencies must now remit 100 per cent of revenue generated directly into designated TSA or Sub-TSA accounts.
Any service fees or charges tied to revenue collection will be paid separately from treasury accounts, rather than deducted before remittance. This shift aims to enforce full accountability and enhance visibility of government earnings.
As part of the digital overhaul, a new electronic receipt system, the Federal Treasury e-Receipt, will become the sole legally recognized proof of payment for all federal transactions from January 1, 2026. To reinforce compliance, MDAs must visibly display notices stating “NO PHYSICAL CASH RECEIPT” and “NO CASH PAYMENT.”
The government emphasized that accounting officers will be held personally liable for violations, warning that the continued use of paper-based transactions contradicts existing reforms under the Treasury Single Account framework.
The move forms a key part of a broader digital treasury transformation designed to enhance transparency, plug leakages, and modernize public financial management.
