Nigeria’s federal government has directed all ministries, departments, and agencies (MDAs) to deploy point-of-sale (PoS) terminals within 45 days, according to PUNCH, intensifying its ban on cash collections to curb long-standing revenue leakages.
The order, issued in a circular dated November 24, 2025, comes after what the government described as “continued physical cash collection” at MDA transaction centres, despite policies prohibiting the practice for years.
The circular noted that such behaviour violates the e-payment policy, the Treasury Single Account (TSA) framework, and multiple circulars issued since 2008.
According to the government, ongoing cash collections undermine the integrity of e-collection and e-payment systems and weaken efforts to optimise revenue. The move is part of a broader push to bring more federal revenue operations into real-time digital platforms.
Don’t Miss This:
FG To Launch Two New Funds In 2026 To Support Nigerian Startups And Creatives
The Federal Inland Revenue Service (FIRS) recently instructed banks, card schemes, and fintech companies to integrate into its new portal for tracking all VAT-eligible transactions.
With oil earnings declining, the government aims to grow tax and customs revenue to at least ₦17.85 trillion ($12.31 billion) in 2026. These digital reforms are intended to ensure every naira collected reaches the federal purse and to end decades-long revenue leakages.
From January 1, 2026, MDAs must issue only the new Federal Treasury e-Receipt (FTeR), which will serve as the legally recognised proof of payment for all federal transactions.
This rollout coincides with the full deployment of the revenue optimisation platform (RevOp), a unified digital system handling billing, reconciliation, and real-time revenue tracking across MDAs.
The reforms also ban the use of customised front-end applications on unapproved Payment Solution Service Provider (PSSP) platforms.
“The gross amount collected from any payer must be remitted directly into the TSA, without exception,” the circular stated, adding that deductions such as commissions or charges will no longer be taken at the point of collection.
MDAs still using manual or cash-based systems have 45 days to deploy PoS terminals or other authorised electronic devices at all revenue points.
Government revenue offices are required to display notices stating: “no physical cash receipt” and “no cash payment.”
The circular emphasised: “Hence, all payments to government must be made via electronic channels duly approved by the OAGF and integrated to the appropriate TSA accounts.”
Don’t Miss This:
FG To Unveil Single Travel Emergency Passport In January 2026
Image Credit: TechCabal
