FG Bans Cash Payments to MDAs, Orders Deployment of POS Terminals

The Federal Government has announced a sweeping ban on the use of physical cash for revenue payments, directing all Ministries, Departments, and Agencies to fully switch to electronic transactions.

The directive, issued through four Treasury circulars released by the Office of the Accountant-General of the Federation, mandates MDAs to install functional POS terminals and other approved electronic payment devices within 45 days.

According to the circulars signed by the Accountant-General, Shamseldeen Ogunjimi, all payments to the Federal Government must now be routed through approved electronic channels and integrated into the Treasury Single Account.

The Treasury expressed concern over the continued use of physical cash at revenue points despite long-standing e-payment rules, warning that such practices undermine transparency and weaken the integrity of government financial systems.

It added that MDAs currently collecting cash must immediately sensitise staff and the public, and display “NO PHYSICAL CASH RECEIPT” notices at all revenue collection points as preparations for the transition intensify.

“All collections for and on behalf of the Federal Government must be made electronically, as the acceptance of physical cash whether in naira or foreign currency is strictly prohibited,” one of the circulars stated.

“Any breach of this directive will attract sanctions, and accounting officers will be held fully responsible for non-compliance,” it added.

The circulars also introduced measures to halt unauthorised deductions by MDAs through customised payment platforms, enforce a unified electronic receipt system beginning January 1, 2026, and mandate the integration of all revenue systems into the new Revenue Optimisation (RevOP) platform.