Accountant General of the Federation (AGF), Mr. Shamseldeen Ogunjimi
8th December, 2025
The Federal Government on Monday, announced a ban on the use of physical cash for any form of revenue payment or collection across its Ministries, Departments and Agencies (MDAs), declaring that the era of cash transactions in government offices has come to an end.
In a series of fresh circulars issued by the Office of the Accountant-General of the Federation (OAGF), the government said it is alarmed by the persistent violation of the Treasury Single Account (TSA) and e-payment policies despite many years of clear directives prohibiting cash handling at transaction centres.
According to the circulars, the continued use of cash by some MDAs has created loopholes, weakened the integrity of the government’s electronic payment systems and exposed public revenue to leakages and manipulation.
The Accountant-General, Shamseldeen Ogunjimi, noted that the practice of collecting cash at government offices is not only unlawful but undermines transparency and accountability, which the TSA was created to enforce.
The government therefore directed all MDAs and Federal Government-Owned Enterprises to immediately stop accepting or collecting physical cash, whether in naira or any other currency, for any government revenue.
It added that all payments must henceforth be made through approved electronic channels integrated into the TSA. MDAs were further instructed to sensitize their staff, service users and the public on the new order and to display visible notices at all payment points bearing the warnings: “No physical cash receipt” and “No cash payment.” Agencies currently handling cash were given forty-five days to deploy functional POS machines or other approved electronic collection devices, with Accounting Officers held personally responsible for violations.
In another directive, the OAGF condemned the growing trend of MDAs using customised portals and Payment Solution Service Providers (PSSPs) that deduct fees, charges or commissions at the point of revenue collection before remitting the balance to the TSA.
The circular warned that these unauthorised platforms have led to significant revenue leakages and contravene financial regulations guiding the deployment of payment systems for government collections. It therefore ordered the immediate stoppage of all such deductions and insisted that every kobo collected must be remitted in full to the designated TSA or Sub-TSA account.
Service providers’ charges, where applicable, are to be paid separately from designated TSA sub-accounts.The government also directed all MDAs using portals or PSSPs without approval to regularise their arrangements with the OAGF on or before December 31, 2025.
Any agency that fails to comply risks having its GIFMIS and TSA access disabled.
