FG Implements Cashless Payment Policy for Federal Revenue Collection
The Nigerian government has announced that, effective January 1, 2026, all physical cash payments for revenue transactions at federal ministries, departments, and agencies (MDAs) will be prohibited.
This initiative is part of a comprehensive public finance reform aimed at digitizing revenue collection and increasing transparency.
Key Policy Highlights
Mandatory Electronic Payments: All government service transactions must now be conducted through approved electronic channels, including card payments, bank transfers, USSD codes, or in-person payments at designated banks.
Implementation Deadline: MDAs have 45 days from early December 2025 to deploy functional Point of Sale (PoS) terminals and other electronic payment devices at all collection points.
Proof of Payment: Starting January 1, 2026, only the Federal Treasury e-Receipt (FTeR), issued via the Office of the Accountant-General of the Federation’s Revenue Optimization Platform (RevOp), will serve as valid proof of payment. This measure aims to eliminate fraud associated with fake or paper-based receipts.
Prohibition of Deductions: MDAs are explicitly forbidden from deducting fees, commissions, or service charges at revenue collection points.
The full amount collected must be remitted into the Treasury Single Account (TSA).
Public Awareness Campaigns: MDAs are required to promptly initiate public sensitization and display signage at collection points stating “NO PHYSICAL CASH RECEIPT” and “NO CASH PAYMENT”.
Objectives and Benefits
The policy promotes transparency, accountability, and efficiency in public finance management. It aims to reduce corruption by removing cash handling and establishing automated audit trails, thereby minimizing revenue leakages, under-remittance, and fraud.
Real-time Revenue Monitoring: The Revenue Optimization Platform will provide a unified, real-time overview of revenue collection across all agencies, enabling improved oversight and prompt interventions.
Enhanced Efficiency: Transitioning to a fully digital system is expected to streamline payment processes for citizens and businesses, ensuring secure and reliable transaction confirmations.
This reform marks a significant milestone in federal revenue administration since the introduction of the TSA, reflecting a decisive move towards a cashless and data-driven public finance system.
