Nigeria’s federal government has issued its strongest directive yet to ban cash payments in public institutions, ordering all ministries, departments, and agencies (MDAs) to deploy point-of-sale (PoS) terminals by January 2026.
The Office of the Accountant General of the Federation (OAGF) has issued circulars to ministries, departments, and agencies (MDAs), outlining new rules, timelines, and sanctions for non-compliance.
In the circular, titled “Enforcement of ‘No Physical Cash Receipt’ Policy” and dated 24 November 2025, the Accountant General of the Federation, Dr Shamseldeen B. Ogunjimi, ordered all MDAs to cease the collection or acceptance of physical cash for government revenue.
“The gross amount collected from any payer must be remitted directly into the TSA, without exception,” the circular stated.
What You Should Know
Dr Ogunjimi stressed that receiving cash in naira or any other currency is now strictly prohibited and reiterated that all payments must be made through approved electronic channels, in line with long-standing e-payment and Treasury Single Account (TSA) policies.
He explained that the persistence of cash handling across MDAs undermines the integrity of federal revenue systems and directly contravenes established digital payment frameworks.
To ensure full compliance, the OAGF instructed all MDAs to begin immediate sensitisation of staff and the public, including the mandatory display of “No Physical Cash Receipt” and “No Cash Payment” notices at every government payment point.
The rollout will coincide with the full deployment of the Revenue Optimisation Platform (RevOp), a unified digital infrastructure built to handle billing, reconciliation, and real-time tracking for every MDA.
MDAs Face Tight Deadline to Deploy PoS Terminals
The reforms introduce strict financial controls. Agencies are now forbidden from using customised front-end applications running on unapproved Payment Solution Service Provider (PSSP) platforms.
Crucially, no deductions, charges, or commissions may be taken at the point of collection. Instead, every naira collected must first hit the TSA, from which settlements will later be processed centrally.
Agencies still operating manual or cash-based systems have been given 45 days to install PoS terminals or other approved electronic collection devices at every revenue touchpoint.
The government has also mandated prominent signage at all MDA locations displaying the notices: “no physical cash receipt” and “no cash payment.”
All payments to the government must now be made exclusively through digital channels approved by the Office of the Accountant-General of the Federation (OAGF) and fully integrated into TSA accounts.
Will the New PoS Mandate Finally Close Revenue Leakages?
Financial systems analyst Faith Adebiyi explained that the policy tackles the most persistent vulnerability in public revenue. According to her, eliminating physical money at MDA payment points instantly removes avenues for diversion, under-reporting, or delayed remittance.
“There’s a need for audits, continuous monitoring and sanctions that deter any attempt to bypass the new rules. Without this, the policy would remain strong on paper but weak in practice,” she told Techparley.
Adebiyi added that implementation must be uncompromising to deliver results. She warned that if the agencies quietly maintain parallel cash channels, then leakage will continue under a different name.
Governance and public finance expert Ibrahim Yahya also offered a measured view. He argued that digital transactions naturally introduce transparency because they produce verifiable data trails.
“Every PoS or online payment leaves a footprint, and footprints make it harder to hide revenue,” he said. “However, leakages could still emerge if MDAs rely on outdated PoS devices or systems not linked to the Treasury Single Account (TSA). Integration is everything — if the tools don’t talk to TSA, leakages simply migrate.”
Both experts agreed that the mandate provides a structural foundation for curbing leakages, but it is not a magic fix. The consensus is that the PoS policy has real potential to tighten government revenue flow, yet its long-term effectiveness will depend on whether MDAs fully adopt it, invest in proper infrastructure, and uphold transparency at every stage.
What This Means
The latest directive forms part of a broader push by Abuja to digitise revenue flows in real time and reduce its dependence on crude oil receipts.
With oil revenue weakening, authorities are targeting ₦17.85 trillion (£12.31 billion) in tax and customs revenue for 2026. Technology, the government argues, is now central to meeting this ambition.
Earlier this quarter, the Federal Inland Revenue Service (FIRS) also instructed banks, fintech firms, and card processors to integrate with its new portal for tracking VAT-eligible transactions.
The move is designed to ensure that taxable activity across banking and digital commerce is captured instantly, reducing loopholes that have allowed billions of naira to slip through the cracks.
Although previous administrations introduced digital reforms, enforcement has been inconsistent. Analysts note that physical cash handling has enabled informal deductions, undocumented transactions, and revenue withholding, issues that have plagued federal collections for decades.
If implemented as designed, experts say the reforms could mark one of Nigeria’s most sweeping financial control overhauls in recent years, reshaping how millions of citizens interact with government services and how trillions of naira flow into federal coffers.
Talking Points
The federal government’s new directive marks one of the strongest pushes yet to eliminate physical cash from Nigeria’s public revenue system, signalling a decisive shift toward full digital compliance across all MDAs.
At Techparley, we see this as an important step toward closing long-standing leakages that have persisted despite more than a decade of e-payment and TSA reforms. By mandating PoS deployment, enforcing electronic receipts, and banning unapproved payment platforms, the government is attempting to create a single, transparent revenue pipeline.
The insistence that every naira be remitted directly into the TSA could reshape the accountability structure within MDAs, many of which have historically relied on opaque cash-based processes. This change, however, will require significant operational adjustments, capacity-building, and oversight to ensure the policy works in practice, not just on paper.
The success of this transition will depend on strict enforcement, technology adoption, and the willingness of MDAs to abandon entrenched cash practices.
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