Physical cash receipts prohibited in federal MDAs from January 1 — FG

The Federal Government has announced a nationwide ban on physical cash receipts for all revenue-related transactions in Ministries, Departments, and Agencies (MDAs), effective January 1.

The directive, issued by the Office of the Accountant General of the Federation (OAGF) under the authority of Finance Minister and Coordinating Minister of the Economy, Wale Edun, is part of a broader digital overhaul of Nigeria’s public finance system.

Under the new rules, MDAs are prohibited from issuing or accepting handwritten or printed cash receipts.

All payments must now be processed digitally, remitted directly into the Treasury Single Account (TSA), and acknowledged with an electronic receipt through the Federal Treasury eReceipt (FTeR) system.

The OAGF described the measure as “non-negotiable,” aiming to curb revenue leakages, improve transparency, and modernise federal revenue administration.

While the ban on physical receipts takes effect immediately, the FTeR will become mandatory from January 1, 2026, giving MDAs a one-year transition period to fully adopt the system.

The platform generates secure, traceable digital receipts linked in real time to the payer, the service rendered, the MDA, and the amount remitted to the TSA.

The circular also prohibits all forms of deductions, including commissions, convenience fees, or service charges by MDAs or payment service providers during collections.

Officials say the reforms will significantly improve accountability and eliminate fake or unofficial receipts that have long plagued government transactions.