The Accountant General of the Federation (AGF), Mr. Shamseldeen Ogunjimi, on Monday announced a sweeping policy change mandating the cessation of all physical cash collections for federal government revenues.
The directive applies to Naira and foreign currencies and requires that all payments to the government be processed electronically.
Ogunjimi disclosed the new measures through a series of circulars to Ministries, Departments, and Agencies (MDAs) and Federal Government-Owned Enterprises (FGOEs), aimed at curbing revenue leakages and ensuring accountability and transparency in government financial transactions.
The AGF noted that the continued acceptance of cash at various MDA collection points had raised serious concerns, contravening existing e-payment policies, Treasury Single Account (TSA) rules, and related implementation guidelines.
“Persistent violations by MDAs and other parties in government transactions are unacceptable
“Physical cash collection undermines government policies and weakens the integrity of federal e-collection and e-payment systems, ” he said.
Going forward, all MDAs and FGOEs must inform their staff, stakeholders, and the public of the new “No Physical Cash Receipt” and “No Cash Payment” policy, with visible notices displayed at every revenue collection point.
All payments must be made through electronic channels approved by the Office of the Accountant General of the Federation (OAGF) and integrated with the appropriate TSA accounts.
MDAs currently collecting cash are required to deploy functional POS terminals or other approved electronic collection devices at all locations within 45 days of the circular.
Accounting officers have been tasked with enforcing compliance and will be held accountable for any breaches.
The AGF also directed the immediate cessation of any direct deductions from government revenues collected via portals, Payment Solution Service Providers (PSSPs), or other applications.
All gross revenue must now be remitted in full to designated TSA or sub-TSA accounts. Any service fees, levies, or charges must be paid directly from TSA sub-accounts.
Furthermore, all portals, PSSPs, and other service providers currently used by MDAs for revenue collection must be regularised with the OAGF by December 31, 2025.
Ogunjimi expressed concern that many MDAs had been using customised front-end applications linked to various PSSP platforms, resulting in deductions at the point of collection before funds reached the TSA—practices he described as violations that led to significant revenue leakages.
In a separate circular, the AGF announced that the Treasury would issue the Federal Treasury e-Receipt (FTe-R) beginning January 1, 2026.
The FTe-R would be centrally generated through the RevOP platform and electronically delivered to payers, serving as both the official receipt and proof of revenue collection.
“The government is undertaking a fundamental reform to standardise and secure proof of payment for all collections as part of efforts to achieve end-to-end transparency within the TSA framework,” Ogunjimi stated.
The AGF further revealed that the federal government is deploying the Revenue Optimisation and Assurance Platform (RevOP) across all MDAs and FGOEs.
The system is intended to provide real-time revenue collection, unified billing, automated reconciliation, and treasury visibility.
It would integrate seamlessly with TSA, GIFMIS, CBN, NIBSS, FIRS systems, and all revenue-collecting banks, enabling automated disbursement, revenue splitting, and monitoring of all accounts in both local and foreign currencies.
“The RevOP platform is now the approved federal government system for end-to-end revenue optimisation,” Ogunjimi said, underscoring the government’s commitment to a technology-driven, transparent, and accountable revenue collection framework.
