The Federal Government has announced sweeping reforms to fully digitalise all revenue collection processes from January 1, 2026, marking one of the most ambitious public finance overhauls in recent years.
A series of circulars issued by the Office of the Accountant General of the Federation (OAGF) to Ministries, Departments and Agencies (MDAs) outline new rules, deadlines, and sanctions as part of a nationwide transition away from cash-based transactions.
In the first circular dated November 24, 2025 and titled “Enforcement of ‘No Physical Cash Receipt’ Policy”, the Accountant General of the Federation, Dr. Shamseldeen B. Ogunjimi, directed all MDAs to cease the collection or acceptance of physical cash for government revenue. He stressed that physical cash—whether in naira or foreign currency—is now strictly prohibited, and all payments must be made electronically.
According to him, continued cash collection violates existing Treasury Single Account (TSA) and e-payment policies, weakens revenue integrity, and fuels leakages. The OAGF ordered MDAs to immediately sensitise staff and the public, and display notices reading “No Physical Cash Receipt” and “No Cash Payment” at all designated points. Agencies still using manual payment systems must deploy functional PoS terminals or approved electronic alternatives within 45 days.
The circular also warned that Accounting Officers will be personally liable for breaches linked to their MDAs’ transactions. Under the new directive, customised or unapproved payment platforms hosted by Payment Solution Service Providers (PSSPs) will no longer be permitted.
A second circular, titled “Immediate Cessation of Direct Deductions” and dated November 25, 2025, directed MDAs and Federal Government-Owned Enterprises (FGOEs) to stop the long-standing practice of making unauthorised deductions—such as charges, commissions, or fees—before remitting revenue. The OAGF stated that gross revenue must now be remitted in full into the designated TSA or Sub-TSA, with service providers paid separately through an approved TSA Sub-account.
Portals, PSSPs, and service providers working with MDAs have until December 31, 2025 to regularise their operations with the OAGF or risk sanctions. Non-compliant MDAs and FGOEs will have their GIFMIS access and TSA Sub-accounts disabled.
In a separate directive dated November 26, 2025, the OAGF introduced the Federal Treasury e-Receipt (FTe-R) as the sole legally recognised receipt for all federal government transactions beginning January 1, 2026. Dr. Ogunjimi said the e-receipt will be centrally generated on the Revenue Optimization (RevOP) platform and issued directly to payers, serving as both proof of payment for users and evidence of revenue collection for MDAs.
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Government believes the FTe-R system will eliminate fraud arising from manual receipts, unauthorised deductions, and parallel channels of remittance. Early projections from the OAGF suggest the reforms could save Nigeria billions of naira annually by plugging long-standing revenue leakages.
An official at the Federal Ministry of Finance described the measures as “a major step in Nigeria’s anti-corruption and fiscal transparency agenda,” adding that the reforms will enforce full audit trails and enable real-time digital monitoring across MDAs.
The final circular, dated November 27, 2025 and titled “Rollout and Implementation Guidelines on the Adoption of the Revenue Optimization (RevOP) Platform”, announced the deployment of a unified platform that integrates billing, treasury visibility, reconciliation, and automation of government revenue processes.
The RevOP platform will interface directly with the TSA, GIFMIS, the Central Bank of Nigeria (CBN), the Nigeria Inter-Bank Settlement System (NIBSS), the Federal Inland Revenue Service (FIRS), and collecting banks. It will also enable automated disbursement, revenue splitting, and real-time monitoring of MDAs’ local and foreign currency accounts.
MDAs have been instructed to nominate three RevOP focal personnel within seven working days and to integrate their internal ERP and financial systems into the new platform. Only CBN-licensed PSSPs screened by NITDA and approved by the OAGF will be authorised to operate going forward. Full compliance is required within 60 days.
According to the OAGF, the reforms mark “the most extensive consolidation of Nigeria’s digital public finance infrastructure in a decade,” ensuring that all key systems—TSA, GIFMIS, CBN, NIBSS, FIRS, and MDAs—operate in a unified digital environment.
With the January 1, 2026 deadline approaching, the Federal Government expects the reforms to deliver a more transparent, efficient, and accountable revenue collection process for citizens, businesses, and public institutions.
