FG Physical Cash Transaction Ban for Revenue: This is why

In a sweeping reform aimed at boosting transparency and combatting corruption, the Federal Government has imposed an immediate and total Physical Cash Transaction Ban for all revenues accruing to the government. This mandate, issued by the Accountant General of the Federation (AGF), Mr. Shamseldeen Ogunjimi, is a decisive step to fully enforce the extant Treasury Single Account (TSA) and e-payment policies.

The new policy strictly prohibits the collection or acceptance of physical cash, whether in Naira or any foreign currency, for all financial obligations due to the federal government. Going forward, every revenue collection made for or on behalf of the Federal Government must be processed exclusively through electronic channels.

This decisive action stems from the government’s observation of persistent violations of e-payment rules by Ministries, Departments, and Agencies (MDAs), which allowed physical cash collection to continue at various transaction centres. The AGF warned that this trend is “unacceptable” as it weakens the integrity of the federal e-collection systems and leads to significant revenue leakages.

New Directives and Strict Deadlines

To ensure compliance, the AGF issued several circulars detailing new operational requirements and strict timelines for MDAs and Federal Government-Owned Enterprises (FGOEs):

1. Deployment of PoS Terminals: MDAs and FGOEs currently collecting physical cash have been given a tight 45-day deadline to deploy functional Point-of-Sale (PoS) terminals or other approved electronic collection devices at all their revenue points.
2. No Direct Deductions: All MDAs are required to ensure the immediate stoppage of any direct deductions from government revenues collected through portals or Payment Solution Service Providers (PSSPs). The full, gross amount of revenue must be remitted directly to the designated TSA or Sub-TSA account without any prior deductions. All service charges and fees must be paid separately from designated sub-accounts.
3. Mandatory e-Receipts: Effective January 1, 2026, the treasury will commence the issuance of the Federal Treasury e-Receipt (FTe-R). This electronic receipt will be centrally generated on the new Revenue Optimisation (RevOP) platform and will be the only mandatory and recognised proof of revenue collection.

The AGF stressed that accounting officers of all MDAs and FGOEs will be held directly responsible for any breach of this new regulation.

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The government is also deploying the comprehensive Revenue Optimisation (RevOP) and Assurance platform. This platform is recognised as the approved, service-wide solution for end-to-end revenue management, offering unified automation of billing, reconciliation, real-time treasury visibility, automated disbursement, and seamless integration with key financial systems like TSA, GIFMIS, CBN, NIBSS, and FIRS.

This comprehensive set of directives signals the Federal Government’s unwavering commitment to achieving full fiscal transparency and accountability across all public transactions. For more information, I recommend Songbux.