The Federal Government of Nigeria has unveiled a sweeping digital overhaul of its public finance architecture, implementing a comprehensive ban on the use of physical cash receipts for all revenue-related transactions across Ministries, Departments and Agencies (MDAs). This pivotal reform, set to be fully effective from January 1, 2026, aims to eliminate revenue leakages, enhance transparency, and modernize the nation’s revenue administration framework. The initiative follows the issuance of four major treasury circulars by the Office of the Accountant General of the Federation (OAGF), signed under the authority of the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, and the Accountant-General, Mr. Shamseldeen Ogunjimi.

These circulars, issued between November 24 and November 27, 2025, introduce strict cashless collection procedures, a new mandatory electronic receipt system known as the Federal Treasury eReceipt (FTeR), and the full deployment of the Federal Government’s Revenue Optimisation (RevOp) Platform. The OAGF has unequivocally stated that the ban on physical cash receipts is a decisive step towards ending decades of manual payment practices, which have historically enabled fraud, opaque deductions, and poor audit trails across numerous MDAs. Henceforth, no federal MDA is permitted to issue or accept handwritten or printed cash receipts for any government service. All transactions must be processed digitally, remitted directly into the Treasury Single Account (TSA), and acknowledged with a uniform electronic receipt issued through the FTeR system.

A critical component of this reform is the Federal Treasury eReceipt (FTeR), which will become the sole government-approved receipt for federal payments from January 1, 2026. MDAs are provided a one-year window to fully onboard onto this system. The new e-receipts will be centrally generated from the RevOp platform and delivered directly to payers via channels selected by each MDA. The OAGF describes FTeR as a “fraud-proof, traceable, verifiable digital receipt,” designed to eradicate fake or unofficial acknowledgements currently in circulation. This system ensures every payment to the Federal Government is captured in real-time, providing an immutable audit trail linking the payer, the service rendered, the MDA, and the exact amount remitted to the TSA, thereby drastically improving accountability and combating the prevalent use of unofficial receipts in various government services like regulatory licensing, fines, and administrative charges.

Another significant reform introduced by the circulars is the absolute prohibition of all forms of deductions—including commissions, convenience fees, or service charges—by MDAs or payment service providers at the point of collection. The new regulations mandate that the full amount paid by any citizen or business must be remitted directly into the TSA without exception. Any entity seeking to charge fees must obtain express approval from the Minister of Finance. This measure directly addresses the issue of ongoing revenue leakages caused by unauthorised deductions through customised payment platforms, which have historically undermined federal collection integrity. It also seeks to stop agencies from using unapproved Payment Solution Service Providers (PSSPs) that deduct fees before remittance, a practice criticised for reducing the amounts government actually receives.

For ordinary Nigerians, these reforms carry profound implications. The shift essentially ends decades of cash-based interactions with the federal government, touching everything from passport payments, driver’s licence renewals, and business licences to tax remittances and fines. In practical terms, citizens and businesses will have to embrace digital payment channels such as bank transfers, USSD, online portals, and approved POS machines for all government fees. On one hand, the reforms promise greater transparency, reduced corruption, and stronger accountability, because every transaction will be traceable and verifiable. On the other hand, the change poses real challenges for those who rely on cash, including citizens without bank accounts, persons in rural areas with limited internet connectivity, and small businesses used to informal payment ecosystems. The success of the transition will heavily depend on nationwide public education, infrastructure readiness, and interoperability of digital payment systems.

It is important to note that, analysts say the policy could strengthen the nation’s fiscal position, enabling better tracking of government revenues and improving budget planning. By integrating TSA, the Government Integrated Financial Management Information System (GIFMIS), the Central Bank of Nigeria (CBN), the Nigeria Inter-Bank Settlement System (NIBSS), and the Federal Inland Revenue Service (FIRS) into the RevOp platform, the government expects to reduce human discretion in revenue processing and ensure real-time reconciliations. This digital ecosystem aligns with broader efforts to modernise Nigeria’s public financial management and could form the backbone of future reforms aimed at improving efficiency and reducing the cost of governance. However, successful implementation will require collaboration between federal agencies, financial institutions, and technology service providers to ensure that systems are secure, user-friendly, and accessible to all Nigerians.