Market News

by Nduka Chiejina, Abuja

The Federal Government has taken steps to digitalise all forms of government revenue from January 1, 2026, signalling 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.

The circular stated that issuance of the new electronic receipt will begin on January 1, 2026. Dr. Ogunjimi explained that “the FTe-R shall be centrally generated and issued to the payer on the RevOP platform under the authority and control of the OAGF.”

He added that the e-receipt will serve both as the official receipt for citizens and businesses making payments and as the mandatory proof of revenue collection for MDAs.

The adoption of the Federal Treasury e-Receipt represents a fundamental shift in how Nigerians will pay for government services and how MDAs will verify and record such payments.

Government believes the transition will eliminate widespread abuse associated with unauthorised deductions, commissions, or charges taken before remittance to the TSA.

According to OAGF projections, the new rules could save the country billions of naira by closing revenue leakages associated with manual payment systems and unapproved digital channels.

An official at the Federal Ministry of Finance described the reforms as a major step in Nigeria’s anti-corruption and fiscal transparency agenda, saying “they will reduce human discretion, eliminate cash handling, enforce full audit trails, and strengthen accountability through real-time digital monitoring.”

The final circular in the series, titled “Rollout and Implementation Guidelines on the Adoption of the Revenue Optimization (RevOP) Platform” and dated November 27, 2025, announced the deployment of a service-wide platform that will unify billing, reconciliation, treasury visibility, and automation of revenue processes.

The circular stated that “the Revenue Optimization and Assurance Platform is adopted as the approved platform for the Federal Government’s end-to-end revenue management.”

According to the OAGF, the RevOP platform will integrate seamlessly with the TSA, GIFMIS, the Central Bank of Nigeria (CBN), Nigeria Inter-Bank Settlement System (NIBSS), the Federal Inland Revenue Service (FIRS), and revenue-collecting banks.

It will also provide automated disbursement, revenue splitting, and real-time monitoring of both local and foreign currency accounts of MDAs.

MDAs have been directed to nominate three RevOP focal personnel—including one support officer and two Finance and Accounts staff—within seven working days. They must also integrate their Enterprise Resource Planning (ERP) and financial systems into the RevOP platform.

Only CBN-licensed PSSPs recommended by NITDA and approved by the OAGF will be allowed to operate under the new arrangement. Full compliance is required within 60 days.

The OAGF maintained that the combined directives mark the beginning of the largest consolidation of Nigeria’s digital public finance infrastructure in ten years. “TSA, GIFMIS, CBN, NIBSS, FIRS, and MDAs will now speak to each other in a unified digital environment through RevOP,” an official noted.

With these reforms, citizens and businesses are expected to experience a more transparent payment process, while MDAs will now need official approval before deploying any digital payment platform.

The measures also introduce stricter controls on revenue streams that historically suffered from opacity, fragmentation, and weak oversight.

The federal government expects the transition to full digital revenue collection to strengthen trust in its fiscal processes, improve efficiency, and deepen accountability across public institutions as the January 1, 2026 implementation date approaches.