The Office of the Accountant General of the Federation (OAGF) has issued circulars to Ministries, Departments and Agencies (MDAs) outlining new rules, deadlines, and penalties for non-compliance.
By Sodiq Oluwaremilekun
The Federal Government has announced that all government revenue will be collected digitally from January 1, 2026, in a major reform of the nation’s public finance system.
The Office of the Accountant General of the Federation (OAGF) has issued circulars to Ministries, Departments and Agencies (MDAs) outlining new rules, deadlines, and penalties for non-compliance.
In a circular titled “Enforcement of ‘No Physical Cash Receipt’ Policy” dated November 24, 2025, Accountant General Dr. Shamseldeen B. Ogunjimi directed all MDAs to stop accepting or collecting physical cash for government revenue.
Dr. Ogunjimi stated, “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 via approved electronic channels.
He noted that continued cash collection by MDAs violated existing e-payment and Treasury Single Account (TSA) policies and undermined the integrity of government revenue systems. MDAs have been instructed to sensitise staff and the public immediately and display notices stating “No Physical Cash Receipt” and “No Cash Payment” at all payment points.
MDAs currently using cash must install functional Point of Sale (PoS) terminals or other approved electronic devices within 45 days. The circular also warned that accounting officers would be personally accountable for any breaches.
The move ensures all Federal Government revenue is collected electronically, ending cash-based fraud and leakages. MDAs are prohibited from using unapproved Payment Solution Service Provider (PSSP) platforms, and no deductions—such as fees or commissions—can be taken at the point of collection. All payments must be remitted directly into the TSA.
A second circular dated November 25, 2025, titled “Immediate Cessation of Direct Deductions,” directed MDAs and Federal Government-Owned Enterprises (FGOEs) to stop unauthorised deductions from revenue collected through portals or PSSPs. Service charges will now be paid directly from a designated TSA sub-account.
All portals, PSSPs, and service providers must regularise operations with the OAGF by December 31, 2025. Non-compliant MDAs and FGOEs risk having their access to GIFMIS and TSA sub-accounts disabled.
Finally, a directive issued on November 26, 2025, introduced the Federal Treasury e-Receipt (FTe-R) as the only legally recognised receipt for all federal government transactions.
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