By Ajibola Olaide, JKNewsMedia Reporter
THE FEDERAL Government has prohibited ministries, departments and agencies from collecting physical cash for revenue transactions, citing persistent violations of e-payment and treasury single account policies.
The directive was issued in four treasury circulars dated November 24, signed by Shamseldeen Ogunjimi, Accountant-General of the Federation.
Ogunjimi expressed concern over continued physical cash collection at revenue points despite earlier guidelines.
He said the practice contravenes financial regulations and undermines the integrity of the federal government’s electronic collection and payment systems.
“In view of the above, it is hereby directed that collections and/or acceptance of physical cash (in Naira or other currencies) for all revenues due to Federal Government is strictly prohibited,” the circular states.
“All revenue collections, for and on behalf of the Federal Government must be made via electronic processing.”
To enforce compliance, MDAs have been instructed to sensitise staff and the public and to display notices stating “no physical cash receipt/no cash payment” at all revenue collection points.
“Hence, all payments to government must be made via electronic channels duly approved by the OAGF and integrated to the appropriate TSA accounts,” Ogunjimi said.
The circular directs MDAs and federal government-owned enterprises currently collecting physical cash to deploy functional POS terminals or other approved electronic collection devices within forty-five days.
Accounting officers have been warned that they will be liable for any breaches linked to their agencies.
Ogunjimi also highlighted concerns over MDAs deploying payment platforms and front-end applications without approval and permitting service providers to deduct fees before remitting funds into the TSA.
The circular notes that these practices violate rules and regulations, leading to significant revenue leakages and undermining fiscal transparency.
All MDAs and federal government-owned enterprises have been instructed to stop direct deductions through dedicated portals, remit gross revenue into TSA accounts, and regularise all portals and payment service providers with the OAGF on or before December 31, 2025.
The circular warns that non-compliant agencies will have their access to the government integrated financial management information system and TSA sub-accounts disabled, with the TSA/GIFMIS Department mandated to enforce compliance.
In a separate directive, Ogunjimi announced that the federal treasury e-receipt will become the sole recognised proof of government revenue payment from January 1, 2026.
The e-receipt will be centrally generated on the revenue optimisation platform and electronically transmitted to payers through designated payment channels.
The move is aimed at achieving end-to-end transparency within the TSA framework.
The fourth circular introduced the Revenue Optimisation and Assurance Platform as the federal government’s unified system for real-time revenue collection, billing automation, reconciliation and treasury visibility.
Ogunjimi said the platform will integrate with the TSA, GIFMIS, Central Bank of Nigeria, Nigeria Inter-Bank Settlement System, Federal Inland Revenue Service and commercial banks.
