The Federal Government has banned the use of physical cash for collecting any form of government revenue, directing all Ministries, Departments, and Agencies (MDAs) to install Point of Sale (POS) machines and other approved electronic payment devices within 45 days.
The directive was contained in four Treasury circulars issued by the Office of the Accountant General of the Federation, and signed by Accountant General, Shamseldeen Ogunjimi.
According to the circulars, all revenue payments must henceforth be processed electronically through channels approved by the Treasury and connected to the Treasury Single Account (TSA).
The Accountant General warned that accepting physical cash undermines the government’s electronic payment infrastructure. MDAs have been directed to display prominent notices informing the public that cash payments are no longer permitted.
A separate circular also prohibited MDAs from making unauthorised deductions through private payment platforms, citing concerns about revenue leakages. The directive mandates that all revenues must flow directly into government accounts without any intermediary deductions.
The Treasury further announced the introduction of a new electronic receipt system scheduled to commence on January 1, 2026. Under the new arrangement, only electronic receipts will be recognised as valid proof of payment for federal government transactions.
To enhance revenue monitoring, a digital revenue platform designated as RevOP will be deployed to facilitate real-time tracking of payments, improve billing processes, and monitor government accounts. MDAs are required to submit comprehensive details of all their bank accounts and designate staff members to serve as focal personnel for the new system.
The cashless policy is expected to block revenue leakages, improve transparency in government revenue collection, and enhance accountability across federal agencies.
