Revenue Optimisation: FG unveils new digital platform, restricts PSSP operations

The Federal Government has announced sweeping new measures to end the use of physical cash in the payment of revenues across Ministries, Departments and Agencies (MDAs), with a mandatory rollout of Point of Sale (PoS) terminals and other electronic payment channels within the next 45 days.

The reforms, some of the most ambitious since the Treasury Single Account (TSA) was introduced a decade ago, form part of a major restructuring of the federal payment architecture under the Treasury Management & Revenue Assurance System unveiled earlier in March 2025.

In four new circulars issued between November 24 and 27, 2025, the Accountant-General of the Federation, Mr. Shamseldeen Ogunjimi, directed that all payments to the Federal Government must now be made electronically and routed only through channels approved and integrated with the Treasury.

He warned that the continued acceptance of physical cash violates extant regulations and compromises the integrity of the government’s digital collection ecosystem.

“All payments to 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.

It added unequivocally: “Collections and acceptance of physical cash (in Naira or other currencies) for all Federal Government revenues is strictly prohibited.”

The first circular, titled ‘Enforcement of No Physical Cash Receipt Policy for All Federal Government Revenue Transactions’, expressed concern that some MDAs were still collecting cash despite multiple directives sanctioning electronic payment.

It ordered all MDAs and Federal Government-Owned Enterprises to immediately mount signage reading “NO PHYSICAL CASH RECEIPT” and “NO CASH PAYMENT” at their revenue points.

It also mandated the deployment of functional PoS terminals or approved electronic devices within 45 days, warning that accounting officers will be held personally liable for violations.

A second circular, dated November 25 and titled ‘Immediate Cessation of Direct Deductions on MDAs’ Dedicated Collection Systems’, tackled another longstanding concern, the unauthorised deductions by MDAs through customised payment platforms linked to Payment Solution Service Providers (PSSPs).

The Treasury observed that these platforms had been deducting fees and commissions before remitting revenue to the TSA, leading to “significant revenue leakages.”

The circular outlawed such deductions, insisting that all revenues be remitted in full to TSA or Sub-TSA accounts, with service fees henceforth paid centrally from Treasury accounts.

All existing portals and PSSPs must also be regularised with the OAGF before December 31, 2025.

A third circular introduced the Federal Treasury e-Receipt (FTe-R), a unified electronic receipt that becomes the only valid proof of federal payments from January 1, 2026.

The e-receipt will be generated through the Revenue Optimisation platform and sent electronically to payers and MDAs. This phase will initially cover naira transactions, including automated tax deductions such as VAT, WHT and Stamp Duty.

The final circular, dated November 27 and titled ‘Rollout and Implementation Guidelines on the Adoption of the Revenue Optimisation (RevOP) Platform’, confirmed the deployment of a new digital system designed to give the Treasury full, real-time visibility of federal revenues.

RevOP will harmonise billing, reconciliation and revenue monitoring across MDAs and will integrate with TSA, GIFMIS, CBN, NIBSS, FIRS and revenue-collecting banks.

Under the directive, MDAs must nominate three RevOP focal officers within seven working days, integrate their existing financial systems with the platform, and submit details of all local and foreign currency accounts within 60 days.

Only CBN-licensed PSSPs endorsed by NITDA and approved by the OAGF will be permitted to operate within the new framework.

The Accountant-General emphasised that directors of finance, internal auditors and accounting officers must ensure wide circulation of the directives and strict adherence, warning that sanctions await defaulting MDAs, including the suspension of access to GIFMIS and TSA portals.

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