Government Bans Physical Cash Collection for Revenue, Citing TSA Violations
ABUJA, NIGERIA — The Federal Government has taken a definitive step to enforce digital financial transparency by prohibiting all Ministries, Departments, and Agencies (MDAs) from collecting physical cash for revenue transactions.
The move comes in response to persistent violations of the existing e-payment and Treasury Single Account (TSA) policies, which are designed to centralize and secure government revenues.
The 45-Day Ultimatum
The directive was formally communicated through four treasury circulars, all dated November 24, and issued by the Office of the Accountant-General of the Federation (AGF). The circulars were signed by Shamseldeen Ogunjimi, the Accountant-General of the Federation.
To ensure immediate compliance, the MDAs have been given a strict 45-day deadline to fully implement the new policy by deploying appropriate Point of Sale (PoS) terminals and other electronic channels at all their collection points.
Reason for the Ban
Mr. Ogunjimi expressed deep concern in the circulars over the continued practice of physical cash collection at government revenue points, despite explicit guidelines issued in earlier circulars designed to mandate electronic collection methods.
The ban is intended to plug revenue leakages, improve accountability, and consolidate government funds through the TSA system, ensuring that all public finances are channeled transparently and directly to the Consolidated Revenue Fund. The reliance on cash has long been cited as a major vulnerability to corruption and financial mismanagement within government agencies.
