Abuja – The Federal Government announced on Sunday that cash payments for any federal service will be prohibited beginning January 1 2026 as part of a sweeping digital revenue‑collection overhaul. The reform introduces the Federal Treasury eReceipt (FTeR) and expands the Revenue Optimisation (RevOp) Platform to every government agency, creating a unified digital framework for monitoring, reconciling and managing federal revenues.
The Office of the Accountant General of the Federation (OAGF) has issued several circulars outlining the transition, mandating that all federal payments be processed electronically. Under the new system, the FTeR will become the sole legally recognised receipt for payments to federal agencies, automatically issuing digital acknowledgments for every transaction and eliminating paper receipts and the possibility of counterfeit documents.
Officials said the policy is designed to modernise public finances, curb revenue leakages and limit opportunities for corruption. “The move will help save money previously lost to unapproved deductions and cash handling, while strengthening transparency and improving overall fiscal management,” a senior OAGF official said.
The policy also bans unauthorised deductions, commissions or charges before funds are transferred to the Treasury Single Account (TSA), ensuring that the full amount paid reaches government coffers directly.
Through RevOp, the TSA, the Central Bank of Nigeria, the Federal Inland Revenue Service and other agencies will interact in real time, enabling continuous tracking and accountability of government funds. The integrated digital ecosystem will affect citizens, businesses, financial institutions and digital service providers, who will now operate within a fully electronic payment environment.
The Federal Government said the shift to a cash‑free system for federal services will reduce administrative costs, improve efficiency and reinforce the country’s commitment to transparent and accountable public finance management. Further details and implementation guidelines are expected in the coming weeks as agencies prepare for the January deadline.
