The Federal Government has announced a sweeping ban on the use of physical cash receipts for all revenue-related transactions in Ministries, Departments and Agencies (MDAs) effective January 1,2025.
The directive follows the release of four major treasury circulars by the Office of the Accountant General of the Federation (OAGF) issued under the authority of the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun.
The circulars introduce strict cashless procedures, mandatory electronic receipts, and the full rollout of the Federal Government’s Revenue Optimisation Platform.
According to the OAGF, the new rule is aimed at eliminating leakages, curbing fraud, and modernising Nigeria’s revenue administration system.
It noted that the move marks a decisive shift away from decades of manual payment practices that have enabled opaque deductions and weak audit trails across MDAs.
Under the new arrangement, no federal MDA is permitted to issue or accept handwritten or printed cash receipts for any service.
All payments must be processed digitally, remitted directly into the Treasury Single Account(TSA), and acknowledged only through a uniform electronic receipt generated via the Federal Treasury eReceipt (FTeR) system.
The OAGF said this step is “non-negotiable” and part of the most ambitious upgrade to treasury operations since the introduction of the TSA.
Although the ban takes effect immediately, the use of the FTeR becomes mandatory on January 1, 2026, providing MDAs one year to fully onboard.
The OAGF described the e-receipt as a “fraud-proof, traceable, verifiable digital receipt”, adding that it eliminates fake or unofficial acknowledgments currently used in several government offices.
Every payment will now have a real-time audit trail linking the payer, the service rendered, the MDA, and the amount remitted.
The circulars also prohibit all forms of deductions, such as commissions, convenience fees, or service charges—by MDAs or payment service providers at the point of payment.
All funds must be remitted in full to the TSA, and any party seeking to charge fees must obtain explicit approval from the Minister of Finance.
According to the OAGF, the era where MDAs partnered with unapproved platforms and collected revenue outside official channels “is over.”
To enforce compliance, the Revenue Optimisation Platform (RevOp) has been designated the Federal Government’s central system for billing, revenue monitoring, reconciliation, and reporting.
MDAs are required to migrate to RevOp and discontinue the use of any unapproved software.
The reforms align with Edun’s larger plan to improve how money is made, cut down on losses, and increase openness by using technology-based approaches.
The government noted that the new policy brings Nigeria closer to global standards in digital governance, while closing loopholes that have undermined revenue performance for years.
It warned that non-compliance by MDAs will attract sanctions.
According to the OAGF, January 1,2026 marks the beginning of a new era for Nigeria’s federal revenue system, one rooted in transparency, automation, and accountability.
