Nigeria’s federal government has ordered all ministries, departments and agencies (MDAs) to deploy point-of-sale (PoS) terminals by January 2026, stepping up its ban on cash collections in a bid to close long-running revenue leakages.

The directive, issued in a circular dated November 24, 2025, follows what the government described as “continued physical cash collection” at MDA transaction centres despite policies that have outlawed the practice for years. It said the behaviour violates the e-payment policy, the Treasury Single Account (TSA) framework, and multiple circulars issued since 2008.

According to the government, continued cash collections undermine the integrity of its e-collection and e-payment systems and weaken its revenue optimisation drive. This move comes as the government pushes more of its revenue operations into real-time digital environments.

The Federal Inland Revenue Service (FIRS) recently directed banks, card schemes, and fintechs to integrate into its new portal for tracking all VAT-eligible transactions.

With oil earnings shrinking, the government is banking on technology to grow tax and customs revenue to at least ₦17.85 trillion ($12.31 billion) in 2026. The digital reforms are designed to ensure every naira collected gets to the federal purse and end the leakages that have defined public revenue collection for decades.

From January 1, 2026, MDAs will be required to issue only the new Federal Treasury e-Receipt (FTeR), which becomes the legally recognised proof of payment for all federal transactions. The rollout coincides with the full deployment of the revenue optimisation platform (RevOp), a unified digital system that will handle billing, reconciliation, and real-time revenue tracking across all MDAs.

The reforms also ban the use of customised front-end applications running on unapproved Payment Solution Service Provider (PSSP) platforms. Deductions, including commissions or charges, will no longer be taken at the point of collection.

“The gross amount collected from any payer must be remitted directly into the TSA, without exception,” the circular read.

MDAs currently using manual or cash-based systems now have 45 days to deploy PoS terminals or other authorised electronic collection devices at all their revenue points.

Government revenue spots must put up notices that read: “no physical cash receipt” and ‘no cash payment.” “Hence, all payments to government must be made via electronic channels duly approved by the OAGF and integrated to the appropriate TSA accounts,” the circular added.

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