How Nigeria plans to modernise public finance with new treasury circulars

The Federal Government has issued four new Treasury Circulars aimed at improving revenue transparency and modernising payment processes across all ministries, departments, and agencies (MDAs).

The reforms, which include the mandatory Federal Treasury e-Receipt (FTeR) system, are set to take effect from January 1, 2026.

In a post on its X account on Tuesday, the Federal Ministry of Finance said, “The Federal Government has issued new Treasury Circulars to strengthen revenue transparency and modernise payment processes across all MDAs.”

The circulars are intended to ensure that public funds are properly accounted for while reducing delays and leakages in government payments.

MDAs will be required to adopt standardised digital payment channels, maintain detailed transaction records, and report revenue collections in real time.

For Nigerians, this means faster processing of government payments, improved transparency, and greater accountability in the management of public resources.

The reforms are also expected to make it easier for auditing bodies, such as the Office of the Accountant-General and anti-corruption agencies, to detect irregularities and ensure compliance.

By digitalising payments and standardising reporting processes, the government aims to minimise corruption and financial mismanagement while ensuring that funds meant for public services like health, education, and infrastructure reach their intended destinations.

Citizens and stakeholders will also have better access to information on government spending, enabling greater oversight and civic engagement.

The new Treasury Circulars represent a significant step toward modernising Nigeria’s financial management system, promoting efficiency, transparency, and accountability in public sector operations.