Federal Government of Nigeria to Ban Cash Payments for All Federal Revenue Collections Starting 2026

The Federal Government of Nigeria has announced a complete ban on physical cash payments for all federal revenue transactions, effective January 1, 2026. This represents the most comprehensive overhaul of federal revenue administration since the Treasury Single Account policy was introduced in 2015.

The directive, issued through four treasury circulars from the Office of the Accountant General of the Federation, mandates that all Ministries, Departments, and Agencies must transition to fully cashless operations by the start of 2026. This sweeping reform affects how millions of Nigerians pay for government services, from passport processing to regulatory licenses, tax payments, and administrative fees.

Why the Federal Government is Implementing Cashless Revenue Collection in 2026

The Office of the Accountant General of the Federation has identified that continued cash acceptance at MDA revenue points undermines the integrity of government financial systems and enables significant revenue leakages.

Under the leadership of Finance Minister Wale Edun, the treasury circulars signed by Accountant General Shamseldeen Ogunjimi mandate that all payments to the Federal Government must be processed through approved electronic channels integrated into the Treasury Single Account.

The cashless policy addresses decades of manual payment practices that have facilitated fraud, opaque deductions, and poor audit trails. The government estimates that billions of naira belonging to the Federal Government remained outside the Treasury Single Account until as recently as August 2025.

By eliminating cash transactions entirely, the government expects to recover substantial revenue previously lost to leakages and unauthorized deductions.

The first circular, dated November 24, 2025, explicitly states that collecting physical cash in naira or other currencies for federal revenues is strictly prohibited from January 1, 2026.

MDAs Must Deploy POS Terminals Before January 2026 Implementation

Government agencies currently collecting cash have been directed to deploy functional POS terminals and display bold notices reading "NO PHYSICAL CASH RECEIPT" and "NO CASH PAYMENT" at all revenue points before the January 1, 2026 deadline. The directive applies to all federal government-owned enterprises without exception.

Ministries, Departments, and Agencies must immediately sensitize their staff and service users about the new cashless policy to ensure smooth implementation. Accounting officers will be held personally responsible for any breach of this directive, adding a layer of individual accountability to the enforcement mechanism.

Electronic collection devices must be approved by the Office of the Accountant General of the Federation and fully integrated into the Treasury Single Account system. This ensures that all revenue flows through official government channels with complete transparency and traceability from January 2026.

Revenue Leakages and Unauthorized Deductions Are Now Banned

A second circular issued on November 25, 2025, addresses what the treasury describes as a major source of revenue loss. Several MDAs were using front-end applications linked to Payment Solution Service Providers, enabling fees and commissions to be deducted at source before remitting funds to the Treasury Single Account.

This practice, which violated existing financial regulations, has been immediately terminated. All revenues must now be remitted to designated TSA or Sub-TSA accounts without any deductions whatsoever. Service provider fees, where applicable, must be paid directly from Treasury accounts rather than being deducted at the point of collection.

All existing portals and Payment Solution Service Providers used for revenue collection must be regularized with the Office of the Accountant General of the Federation on or before December 31, 2025. MDAs involved in public-private partnerships have been advised to seek further guidance from the Treasury.

Non-compliant agencies face severe consequences. The government has warned that MDAs that fail to comply will have their access to the Government Integrated Financial Management Information System and Treasury Single Account disabled, effectively cutting them off from federal financial operations.

Federal Treasury e-Receipt Becomes Mandatory from January 2026

The third circular, dated November 26, 2025, introduces a unified electronic receipt system that will revolutionize how Nigerians receive proof of payment for government services. From January 1, 2026, the Treasury will commence the issuance of Federal Treasury e-Receipt, which will serve as the only recognized valid proof of federal transactions.

The FTe-R will be issued through the Revenue Optimisation platform and delivered electronically via channels selected by each MDA. This centrally-issued, fraud-proof digital receipt serves a dual purpose: it acts as a receipt for the payer and as official proof of revenue collection for the government entity.

The mandatory e-receipt system eliminates the risk of counterfeit receipts and provides an auditable trail for every transaction. For citizens and businesses, this means enhanced security and a consistent payment experience across all federal government touchpoints.

Revenue Optimisation Platform to Unify Government Revenue Systems

The fourth circular, dated November 27, 2025, outlines the rollout of the Revenue Optimisation platform, which the government has adopted as the approved service-wide platform for end-to-end revenue optimization. RevOp will provide unified automation of billing, reconciliation, and treasury visibility, and integrate with TSA, GIFMIS, CBN, NIBSS, FIRS, and revenue-collecting banks.

The platform will enable real-time monitoring of accounts held by MDAs, streamline billing processes, and allow for immediate visibility into federal collections. This represents the biggest consolidation of Nigeria's digital public finance infrastructure since the Treasury Single Account policy was introduced in 2015.

MDAs have been directed to nominate three focal officers within seven working days, integrate their existing financial or ERP systems with RevOp, and ensure that only Central Bank of Nigeria-licensed and NITDA-recommended Payment Solution Service Providers approved by the Treasury operate on their platforms.

What This Means for Nigerian Citizens and Businesses

The cashless revenue collection policy will fundamentally change how Nigerians interact with government services. Every payment for passports, driver's licenses, regulatory permits, court fees, tax obligations, and administrative services must now be made digitally through approved channels.

This transformation offers several benefits for ordinary citizens. Digital payments provide automatic receipts and create audit trails that reduce opportunities for corruption. Citizens will no longer need to carry large amounts of cash when accessing government services, improving personal security.

For citizens and business owners, the move offers a more transparent, secure, and consistent payment experience with guaranteed digital receipts and audit trails, fostering greater accountability and confidence.

However, the policy also presents challenges. Nigerians without bank accounts or access to digital payment platforms may face difficulties accessing government services. The government will need to ensure that POS terminals are widely available and functional, particularly in rural areas where digital infrastructure remains limited.

Timeline and Implementation Deadlines for Cashless Revenue Policy

The directives were issued between November 24 and November 27, 2025, giving agencies approximately one month to prepare for the January 2026 implementation.

Enforcement and Penalties for Non-Compliance

The treasury circulars include strict enforcement mechanisms to ensure compliance. Accounting officers in MDAs will be held personally liable for any violation of the no-cash policy. This personal accountability represents a significant deterrent against continued cash collection.

Non-compliant MDAs would have their access to the Government Integrated Financial Management Information System and Treasury Single Account accounts disabled. This penalty effectively paralyzes an agency's ability to operate financially, making non-compliance untenable.

The circulars were dispatched to the highest levels of government, including the Chief of Staff to the President, Ministers, Service Chiefs, the Central Bank Governor, heads of constitutional bodies, the National Assembly, the Judiciary, Directors of Finance and Accounts, and Internal Auditors across all key government institutions.