Nigeria enforces a sweeping cash ban as the Federal Government orders MDAs to adopt e-payments and deploy POS terminals

Accountant-General of the Federation Shamseldeen Ogunjimi has announced a sweeping cash ban on all Federal Government revenue collections, directing Ministries, Departments and Agencies to stop accepting physical cash and to install Point of Sale terminals within 45 days.

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Ogunjimi issued the directive through four Treasury circulars obtained on Monday, warning that cash payments undermine the integrity of the Treasury Single Account and breach long-standing e-payment rules.

He said all revenue due to the Federal Government must now be paid electronically through channels approved by the Treasury.

The first circular, dated 24 November, said the government was alarmed by the continued use of physical cash at MDA revenue points and ordered immediate sensitisation of staff and the public.

MDAs were instructed to display notices reading “NO PHYSICAL CASH RECEIPT” and “NO CASH PAYMENT” at all collection centres.

Accounting officers will be held responsible for any violation.

A second circular, issued on 25 November, halted direct deductions made through customised payment platforms.

It said some MDAs had been using front-end applications linked to Payment Solution Service Providers to deduct charges before remitting balances to the Treasury.

The document described the practice as a serious source of revenue leakage and ordered that all collections be paid in full to designated TSA or sub-TSA accounts.

Service fees must now be settled directly from Treasury accounts.

The circular added that all portals and PSSPs must be regularised with the Office of the Accountant-General before 31 December.

MDAs involved in public-private partnerships were advised to seek further guidance, while those that fail to comply face suspension from the Government Integrated Financial Management Information System and access to TSA accounts.

The reforms continued in a third circular, dated 26 November, which introduced a mandatory national electronic receipt known as the Federal Treasury e-Receipt.

From 1 January 2026, only this centrally issued receipt will be recognised as valid proof of federal transactions. It will be delivered through the Revenue Optimisation platform.

A fourth circular, released on 27 November, detailed rollout guidelines for the Revenue Optimisation platform itself, which will automate billing, enhance Treasury visibility and allow real-time monitoring of MDA accounts.

The platform will integrate with the TSA, GIFMIS, the Central Bank, NIBSS, the Federal Inland Revenue Service and collecting banks.

Each MDA must nominate three officers as focal personnel within seven working days and ensure their internal systems are integrated.

Only PSSPs licensed by the Central Bank, recommended by NITDA and approved by the Treasury may operate on the platform.

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

The measures mark one of the most ambitious overhauls of federal revenue administration since the introduction of the Treasury Single Account a decade ago.

Officials say the reforms will strengthen transparency, curb leakages and modernise government finance.

The new directives build on the Treasury Management and Revenue Assurance System unveiled in March 2025, which aims to centralise revenue collection and payment processing across all MDAs.

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The system’s first phase covers naira-denominated transactions, while a second phase, set for rollout in June 2025, will handle foreign exchange payments and integrate with MDA enterprise resource systems.