FG Outlaws Use Of Physical Cash For Transactions
In a bid to reform the finance sector, the Federal Government has announced plans to digitalise all forms of government revenue starting January 1, 2026.
The new move signals one of the most sweeping public finance reforms the country has witnessed in recent times.
The Office of the Accountant General of the Federation (OAGF) has issued a series of circulars to Ministries, Departments and Agencies (MDAs) spelling out new rules, timelines, and sanctions for non-compliance.
In the first circular titled “Enforcement of ‘No Physical Cash Receipt’ Policy” dated November 24, 2025, the Accountant General of the Federation (AGF), Dr. Shamseldeen B. Ogunjimi, directed all MDAs to stop the collection or acceptance of physical cash for government revenue.
He stated that “collection and acceptance of physical cash, whether in Naira or other currencies, for any revenue due to the Federal Government is strictly prohibited,” adding that all payments must now be made through electronic channels.
Dr. Ogunjimi explained that physical cash collection by MDAs had continued to violate existing e-payment and Treasury Single Account (TSA) policies, and had weakened the integrity of the government’s revenue systems.
The OAGF then directed MDAs to sensitise staff and the public immediately, and to display notices bearing “No Physical Cash Receipt” and “No Cash Payment” at all payment points.
MDAs currently using cash methods must deploy functional Point of Sale (PoS) terminals or approved electronic devices within 45 days.
According to the circular, “Accounting Officers will be held personally accountable for any breach arising from their MDAs’ transactions.”
The policy means that all Federal Government revenue will now be collected without physical cash, ending cash-based fraud and manual leakages that have long plagued public finance.
MDAs will no longer be permitted to use customised front-end applications running on unapproved Payment Solution Service Provider (PSSP) platforms.
No deductions—whether fees, commissions, or charges—can occur at the point of collection, and the entire amount paid must be remitted directly into the TSA.
A second circular titled “Immediate Cessation of Direct Deductions” and dated November 25, 2025, mandated MDAs and Federal Government-Owned Enterprises (FGOEs) to stop unauthorised deductions from government revenues collected through portals or PSSPs.
Dr. Ogunjimi said “the Gross Amount of all revenues must be remitted directly to the designated TSA or Sub-TSA account without any deduction.” Charges or fees due to service providers will now be paid directly from a designated TSA Sub-account, rather than being removed at source.
The circular ordered all portals, PSSPs, and service providers engaged by MDAs to regularise their operations with the OAGF by December 31, 2025. It warned that non-compliant MDAs and FGOEs “shall have all their access on GIFMIS and TSA Sub-accounts disabled.”
In another directive dated November 26, 2025, the OAGF introduced the Federal Treasury e-Receipt (FTe-R) as the only valid and legally recognised receipt for all federal government transactions.
Hafsoh Isiaq is a graduate of Linguistics. An avid writer committed to creative, high-quality research and news reportage. She has considerable experience in writing and reporting across a variety of platforms including print and online.
