Business/Economy
FG cracks down on cash collections, mandates E-Payments, RevOP platform for all MDAs
Written By: Emmanuel Ikhenebome
10 Dec 2025 06:26 AM
Abuja, FCT – In a bold move to eradicate revenue leakages and bolster fiscal transparency, the Federal Government of Nigeria has issued sweeping directives prohibiting Ministries, Departments, and Agencies (MDAs) from accepting physical cash for any revenue transactions.
Effective immediately, all payments must be processed electronically via Point of Sale (POS) terminals and other approved digital platforms, with full implementation required within 45 days.
The reforms, unveiled through four treasury circulars dated between November 24 and 27, 2025, and signed by the Director of Finance and Accounts at the Office of the Accountant General of the Federation (OAGF), Bawa Mokhles Ogunjimi, mark the most significant overhaul of public revenue administration since the introduction of the Treasury Single Account (TSA) a decade ago.
The directives, issued under the authority of the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, aim to eliminate cash-based fraud, unauthorized deductions, and fragmented collection systems that have siphoned billions of naira annually from government coffers.
At the heart of the changes is the immediate suspension of physical cash receipts "in Naira or any other currency" for federal revenues.
MDAs have been ordered to sensitize staff and the public, prominently displaying notices such as "NO PHYSICAL CASH RECEIPT" and "NO CASH PAYMENT" at all revenue points. Accounting officers face personal accountability for any breaches, with non-compliant agencies risking sanctions, including restricted access to the Government Integrated Financial Management Information System (GIFMIS) and TSA accounts.
Complementing the cash ban is the rollout of the Revenue Optimisation (RevOP) platform, a unified digital ecosystem designed for real-time tracking of government revenues.
RevOP will automate billing, reconciliation, and reporting, integrating seamlessly with existing systems like TSA, GIFMIS, the Central Bank of Nigeria (CBN), Nigeria Inter-Bank Settlement System (NIBSS), Federal Inland Revenue Service (FIRS), and revenue-collecting banks.
"This platform will provide unprecedented visibility into MDA accounts, streamlining processes and curbing leakages," Ogunjimi stated in the circulars.
Starting January 1, 2026, a new Federal Treasury e-Receipt (FTe-R) will serve as the sole official proof of payment.
Generated centrally through RevOP and transmitted electronically via payer-selected channels, the FTe-R eliminates manual receipts and ensures tamper-proof verification. MDAs must nominate three focal officers within seven working days to oversee RevOP integration and migrate all existing financial systems to the platform.
Only Payment Solution Service Providers (PSSPs) licensed by the CBN, recommended by the National Information Technology Development Agency (NITDA), and approved by the OAGF will be permitted.
Current PSSPs must connect to RevOP for instant harmonization of collections, and MDAs are barred from using private or unapproved systems. Additionally, all local and foreign currency accounts must be fully declared within 60 days, with the OAGF warning that unauthorized deductions or commissions before TSA remittances will attract severe penalties.
For everyday Nigerians and businesses, the shift promises smoother, more secure transactions but may require adjustment.
"This is a major change in how we pay for government services, from passports to taxes and how those payments are verified," said one economic analyst.
Acording to her, "It directly impacts citizens, enterprises, financial institutions, and digital providers, but the long-term gains in efficiency and trust could be transformative."
Experts predict RevOP could boost revenue collection by 20-30% through better tracking, though initial rollout challenges like POS deployment in remote areas may arise.
The CBN's recent moves to limit cash deposits and withdrawals align with this cashless push, signaling a nationwide pivot toward digital finance.
As MDAs race to comply by the January 2026 deadline, the government has urged public patience and cooperation. Failure to adapt, officials warn, could exacerbate economic pressures amid Nigeria's ongoing recovery efforts.
This digital leap underscores President Bola Tinubu's administration's commitment to modernizing public finances.
Effective immediately, all payments must be processed electronically via Point of Sale (POS) terminals and other approved digital platforms, with full implementation required within 45 days.
The reforms, unveiled through four treasury circulars dated between November 24 and 27, 2025, and signed by the Director of Finance and Accounts at the Office of the Accountant General of the Federation (OAGF), Bawa Mokhles Ogunjimi, mark the most significant overhaul of public revenue administration since the introduction of the Treasury Single Account (TSA) a decade ago.
The directives, issued under the authority of the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, aim to eliminate cash-based fraud, unauthorized deductions, and fragmented collection systems that have siphoned billions of naira annually from government coffers.
At the heart of the changes is the immediate suspension of physical cash receipts "in Naira or any other currency" for federal revenues.
MDAs have been ordered to sensitize staff and the public, prominently displaying notices such as "NO PHYSICAL CASH RECEIPT" and "NO CASH PAYMENT" at all revenue points. Accounting officers face personal accountability for any breaches, with non-compliant agencies risking sanctions, including restricted access to the Government Integrated Financial Management Information System (GIFMIS) and TSA accounts.
Complementing the cash ban is the rollout of the Revenue Optimisation (RevOP) platform, a unified digital ecosystem designed for real-time tracking of government revenues.
RevOP will automate billing, reconciliation, and reporting, integrating seamlessly with existing systems like TSA, GIFMIS, the Central Bank of Nigeria (CBN), Nigeria Inter-Bank Settlement System (NIBSS), Federal Inland Revenue Service (FIRS), and revenue-collecting banks.
"This platform will provide unprecedented visibility into MDA accounts, streamlining processes and curbing leakages," Ogunjimi stated in the circulars.
Starting January 1, 2026, a new Federal Treasury e-Receipt (FTe-R) will serve as the sole official proof of payment.
Generated centrally through RevOP and transmitted electronically via payer-selected channels, the FTe-R eliminates manual receipts and ensures tamper-proof verification. MDAs must nominate three focal officers within seven working days to oversee RevOP integration and migrate all existing financial systems to the platform.
Only Payment Solution Service Providers (PSSPs) licensed by the CBN, recommended by the National Information Technology Development Agency (NITDA), and approved by the OAGF will be permitted.
Current PSSPs must connect to RevOP for instant harmonization of collections, and MDAs are barred from using private or unapproved systems. Additionally, all local and foreign currency accounts must be fully declared within 60 days, with the OAGF warning that unauthorized deductions or commissions before TSA remittances will attract severe penalties.
For everyday Nigerians and businesses, the shift promises smoother, more secure transactions but may require adjustment.
"This is a major change in how we pay for government services, from passports to taxes and how those payments are verified," said one economic analyst.
Acording to her, "It directly impacts citizens, enterprises, financial institutions, and digital providers, but the long-term gains in efficiency and trust could be transformative."
Experts predict RevOP could boost revenue collection by 20-30% through better tracking, though initial rollout challenges like POS deployment in remote areas may arise.
The CBN's recent moves to limit cash deposits and withdrawals align with this cashless push, signaling a nationwide pivot toward digital finance.
As MDAs race to comply by the January 2026 deadline, the government has urged public patience and cooperation. Failure to adapt, officials warn, could exacerbate economic pressures amid Nigeria's ongoing recovery efforts.
This digital leap underscores President Bola Tinubu's administration's commitment to modernizing public finances.
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