The Federal Government has outlawed the use of physical cash for the payment of revenue and directed Ministries, Departments, and Agencies to install Point of Sale terminals within 45 days.
The directive formed part of four Treasury circulars issued by the Office of the Accountant-General of the Federation and obtained by The PUNCH on Monday. In the documents, the Accountant-General, Shamseldeen Ogunjimi, said all payments to the Federal Government must now be made electronically and routed through channels approved by the Treasury.
“All payments to the government must be made through electronic channels approved by the Office of the Accountant-General of the Federation and integrated into the appropriate Treasury Single Account,” the circular read, warning that the continued acceptance of physical cash was prohibited.
“In view of the above, it is hereby directed that collections and/or acceptance of physical cash (in Naira or other currencies) for all revenues due to the Federal Government is strictly prohibited. All revenue collections, for and on behalf of the Federal Government, must be made via electronic processing,” the circular stated.
The first circular, titled ‘Enforcement of No Physical Cash Receipt Policy for All Federal Government Revenue Transactions’, dated November 24, 2025, said the government was alarmed at the “continued physical cash collection” at MDA revenue points despite existing rules on e-payment and the Treasury Single Account.
It said physical cash collection violated extant policies and “weakens the integrity of Federal Government e-collection and e-payment systems.” The circular directed all MDAs and Federal Government Owned Enterprises to immediately sensitise staff and the public on the ban and to display notices reading “NO PHYSICAL CASH RECEIPT” and “NO CASH PAYMENT” at all revenue collection points.
It added that any MDA currently collecting cash must, within 45 days, deploy functional POS terminals or other approved electronic devices at all locations. To enforce compliance, it warned that accounting officers would be held responsible for any breach.
