Treasury Revolution: Nigeria Goes Cashless Jan 1
…Seizes Control of $1tr Revenue Pipeline
By Patience Ikpeme
The Federal Government has launched a decisive, multi-pronged financial offensive to seize full control of the nation’s revenue streams.
In addition, the federal government has mandated a complete shift to digital payments and outlawing the collection of physical cash by all Ministries, Departments, and Agencies (MDAs) starting January 1, 2026.
This sweeping reform is expected to eliminate cash-based fraud, stop unauthorized commissions, and boost government revenue collection, forming a critical pillar of the country’s drive toward a $1 trillion economy.
The Office of the Accountant-General of the Federation (OAGF), led by Dr. Shamseldeen B. Ogunjimi, issued a suite of four Treasury Circulars in late November 2025 detailing the new regulations and the severe sanctions for non-compliance.
The first and most immediate directive is the “Enforcement of ‘No Physical Cash Receipt’ Policy”. All revenue collections, whether in Naira or other currencies, must be made via electronic processing, as the acceptance of physical cash is now “strictly prohibited”.
The OAGF observed that continued physical cash collection contravenes existing e-payment and Treasury Single Account (TSA) policies, warning that this action “weakens the integrity of Federal Government e-collection and e-payment systems”.
MDAs have been given forty-five (45) days from the circular’s date to deploy functional Point of Sale (POS) terminals or other approved electronic collection devices at all revenue points. Accounting Officers will be held accountable for any breaches traceable to their MDAs’ official transactions.
In a major move to plug revenue leakages, a circular titled “Immediate Cessation of Direct Deductions” mandates that the “Gross Amount of all revenues received from any payer is routed and settled directly into the designated TSA/Sub-TSA account without any deduction(s)”.
This directive eliminates the practice of MDAs using customized applications to siphon charges, fees, and commissions before remitting the final amount to the TSA. All legitimate charges for service providers must now be paid separately “directly from designated TSA Sub-account”.
Non-compliant MDAs face the risk of having “all their access on GIFMIS and TSA Sub-accounts disabled,” a sanction designed to enforce immediate and full compliance. Furthermore, all existing collection portals and Payment Solution Service Providers (PSSPs) must be regularized with the OAGF by December 31, 2025.
The linchpin of the entire reform is the Revenue Optimization (RevOP) & Assurance Platform, adopted as the government’s single approved system for end-to-end revenue management.
The RevOP platform is designed to provide unified automation of billing, reconciliation, and treasury visibility. It will achieve seamless integration with the TSA, GIFMIS, CBN, NIBSS, FIRS, and all revenue-collecting banks, marking a major consolidation of the nation’s digital public finance infrastructure.
MDAs must nominate focal personnel and integrate all their existing Enterprise Resource Planning (ERP)/Financial Systems with the RevOP platform. Full compliance must be achieved within 60 days of the circular’s date.
To secure the audit trail, the circular “Adoption of the Federal Treasury e-Receipt (FTe-R)” mandates that the FTe-R will be the only mandatory and recognized proof of revenue collection for the Federal Government.
Starting January 1, 2026, this official receipt will be centrally generated and issued via the RevOP platform under the strict control of the OAGF, standardizing payments and enhancing accountability for citizens and businesses.
