FG Ends Cash Payments in MDAs, Orders Full Switch to Electronic Channels

by Hannah
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The Federal Government has stopped all cash payments for revenue in ministries, departments and agencies, directing Nigerians to use electronic channels only. The Accountant-G, issued the directive in new Treasury circulars released between November 24 and 27, 2025.

MDAs now have 45 days to install working PoS terminals and must clearly inform the public that cash will no longer be accepted. Ogunjimi said cash transactions encourage revenue leakages and weaken the Treasury Single Account.

The government also blocked agencies from using payment platforms that remove service charges before sending money to federal accounts, insisting that all revenue must be remitted in full.

From January 1, 2026, the Federal Treasury e-Receipt will become the only valid proof of payment for federal services. It will be issued digitally through a new Revenue Optimisation system designed to improve transparency and real-time monitoring.

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MDAs must register their portals and service providers with the Office of the Accountant-General by December 31 or risk losing access to essential financial platforms.

 

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